Comments on: Short Sales, Bank Fraud and Off-HUD Payments http://www.jeremybrandt.com/short-sales-bank-fraud-and-off-hud-payments/ Real Estate + Technology + Business Tue, 02 Mar 2010 01:22:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Debra Maio http://www.jeremybrandt.com/short-sales-bank-fraud-and-off-hud-payments/comment-page-1/#comment-879 Debra Maio Thu, 11 Feb 2010 21:43:32 +0000 http://www.jeremybrandt.com/?p=140#comment-879 Is there some where that we should report this to? I just had a second lien holder ask me to omit the additional amount they want to approve a short sale. Is there some where that we should report this to? I just had a second lien holder ask me to omit the additional amount they want to approve a short sale.

]]> By: Steve Bradley http://www.jeremybrandt.com/short-sales-bank-fraud-and-off-hud-payments/comment-page-1/#comment-112 Steve Bradley Thu, 14 Jan 2010 21:27:10 +0000 http://www.jeremybrandt.com/?p=140#comment-112 I agree with you Greg on the overwhelming workload placing the inexperienced paper pushers in positions of responsibility. It's a complete mess. As for Fraud the one thing my attorney reminds me of often is anything ommitted from the HUD is a violation of Federal law based on RESPA. So why play games at this level? When this happens to us we politely bring this up and often find a way to get back on track, all legal and proper. :) On the same hand we Realtors/Negotiators for the sellers often see our home owners thinking it is the only option to them. I think the duress and strong arm tactic from these banks have to stop. I understand and agree with the banks wanting the best bottomline. But after the mess with predatory lending and microscope on them now WHY would they be so stupid? Probably because they keep getting away with it. I agree with you Greg on the overwhelming workload placing the inexperienced paper pushers in positions of responsibility. It’s a complete mess.

As for Fraud the one thing my attorney reminds me of often is anything ommitted from the HUD is a violation of Federal law based on RESPA. So why play games at this level? When this happens to us we politely bring this up and often find a way to get back on track, all legal and proper. :)

On the same hand we Realtors/Negotiators for the sellers often see our home owners thinking it is the only option to them. I think the duress and strong arm tactic from these banks have to stop.

I understand and agree with the banks wanting the best bottomline. But after the mess with predatory lending and microscope on them now WHY would they be so stupid? Probably because they keep getting away with it.

]]> By: Greg Flanagan http://www.jeremybrandt.com/short-sales-bank-fraud-and-off-hud-payments/comment-page-1/#comment-102 Greg Flanagan Thu, 14 Jan 2010 14:35:24 +0000 http://www.jeremybrandt.com/?p=140#comment-102 Is it fraud or the is the 2nd position merely using a negotiating tactic to recieve a higher payoff? Does the 2nd position not have a right to recoup as much of their principal as possible? I was recently involved in one of these situations and am presently involved in a second. The first was a large known military member servicer who would not accept the payoff offered. We negotiated a payment and rework of the loan at 75% of outstanding principal payable at a reduced rate over 10 years. They then released the lien on a seaprate letter, which was presented at closing but not recorded on the HUD. The present one is a military branch credit union that has refused to accept the token payoff even though an idependent appraisal was completed. The difference in this deal is the seller is truly distressed having lost the principal home through foreclosure and in bankruptcy right now. The 1st has already filed for foreclosure. The buyer offered a higher cash settlement POC but the lender refused, full well knowing they were going to end up with zero dollars at the bankruptcy. The days are gone when lenders would work with folks on keeping them in their homes. The overwhelming work loads have placed inexperienced paper pushers in positions of responsibility. It's only going to get worse. The other practice I have seen which is downright criminal is the lender authorizing a loan modification for 6 months, re-upping for an additional 2 months during which the homeowner has paid on time and then refusing to accept the next payment because the homeowner is still in foreclosure from the original default 8 months prior! Read the modification papers carefully it always states that the hoeowner is still in default. This is just another way lenders are giving false hope to homeowners. Something needs to be done quickly because these mods will be coming due soon and Mr 7 Mrs middle class will be out on the street. Is it fraud or the is the 2nd position merely using a negotiating tactic to recieve a higher payoff? Does the 2nd position not have a right to recoup as much of their principal as possible? I was recently involved in one of these situations and am presently involved in a second. The first was a large known military member servicer who would not accept the payoff offered. We negotiated a payment and rework of the loan at 75% of outstanding principal payable at a reduced rate over 10 years. They then released the lien on a seaprate letter, which was presented at closing but not recorded on the HUD.
The present one is a military branch credit union that has refused to accept the token payoff even though an idependent appraisal was completed. The difference in this deal is the seller is truly distressed having lost the principal home through foreclosure and in bankruptcy right now. The 1st has already filed for foreclosure. The buyer offered a higher cash settlement POC but the lender refused, full well knowing they were going to end up with zero dollars at the bankruptcy.
The days are gone when lenders would work with folks on keeping them in their homes. The overwhelming work loads have placed inexperienced paper pushers in positions of responsibility. It’s only going to get worse.

The other practice I have seen which is downright criminal is the lender authorizing a loan modification for 6 months, re-upping for an additional 2 months during which the homeowner has paid on time and then refusing to accept the next payment because the homeowner is still in foreclosure from the original default 8 months prior! Read the modification papers carefully it always states that the hoeowner is still in default. This is just another way lenders are giving false hope to homeowners. Something needs to be done quickly because these mods will be coming due soon and Mr 7 Mrs middle class will be out on the street.

]]> By: Jared King http://www.jeremybrandt.com/short-sales-bank-fraud-and-off-hud-payments/comment-page-1/#comment-89 Jared King Thu, 14 Jan 2010 03:35:23 +0000 http://www.jeremybrandt.com/?p=140#comment-89 Blogs are now the real journalists...The mainstream media cares more about ad revenue than real journalism. No wonder the newspapers are going broke. Blogs are now the real journalists…The mainstream media cares more about ad revenue than real journalism. No wonder the newspapers are going broke.

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