Foreclosure Dilema

By
Real Estate Agent with IPB Commercial

You have to love California laws. They claim to protect homeowners, but it seems to me they are only harming them. I have been trying to work some short sales as an investor and have found that the Title Companies will not issue title insurance for investors if a Notice of Default has been filed. The home seller has a 2 Year Right of Rescission due to any "unconscionable advantage" an Investor might have impossed on the transaction.

So basically they are saying if you are an investor, you will risk the chance of a law suit if a homeowner believes they were taken advantage of.

What about those of us who are abiding by the law and not taking advantage of the home seller, but helping them through the situation? As a buyer, we create a win-win-win situation for everyone! The home seller avoids a foreclosure on their credit, the bank takes a loss, but can recover faster and not have to spend the time, money, and manpower to deal with the foreclosure process and then the sell of the home, and the investor makes a profit by working the deal. I don't see where anyone in this situation is being taken advantage of!

Now the Governor just signed in a bill on July 9, 2008 that requires lenders to contact the homeowner and try to work out a loan modification or forebearance before filing a Notice of Default. This may be our window of opportunity to help the homeowners and still qualify for the Title Companies requirements. If we can get to the homeowner before the NOD if filed, we can make the deal work for everyone without all the circus hoops and fire rings that we have to jump through right now.

Ok I'm off my box for now and on my way to talk to another title company and an attorney to figure this all out.

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foreclosure
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Rainmaker
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Gregory Lohr
Freedom Foreclosure Prevention Services - West Columbia, SC

Sometimes, I can only wonder what lawmakers are thinking.  Here in SC, I find myself shaking my head constantly at some of the idiotic decisions I see coming from our legislature. 

There are 3 states our company won't do business in because of some of the laws in those states, including the state I live in.  Thank goodness I can work the entire country (except those 3 states).

Jul 11, 2008 12:04 PM #1
Rainer
5,456
Kylie Hatch
IPB Commercial - Pismo Beach, CA

A few bad eggs ruin the whole dozen for the rest of us. Everyone is taking such extreme messures these days. It's all or nothing- they don't consider looking at the laws and working with those of us that do abide by the rules and are really out there to help.

Which states do you avoid Gregory?

Jul 11, 2008 12:32 PM #2
Rainmaker
418,649
Regina P. Brown
California Coast & Country Homes, Inc. - San Luis Obispo, CA
e-Pro Realtor

Kylie, how is that new forced "loan mod" program working out?  From what I can see in the field, it's NOT!  Banks and lenders are doing nothing at all, they don't even respond to borrower requests for loan modifications -- in some cases, for months or even over a year! 

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

Nov 26, 2008 08:57 PM #3
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Rainer
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Kylie Hatch

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