WARNING: Corvus Law Group’s lawsuit is not the answer – It’s a scam!

December 3, 2011 By Leave a Comment

Having trouble paying your mortgage? What if you got an ad in the mail asking you to join in a lawsuit against your lender? The ad looks like a government form and claims you can get large principal reductions or other monetary relief by joining the suit.

Bad news: Idaho State Attorney General Lawrence Wasden is warning consumers that this is a scam.

“The scam is a pretext to collect an unlawful $5,000 upfront fee from homeowners,” Wasden says. “The representations in the solicitations are false and are designed to prey on vulnerable homeowners. My office is currently investigating this company.”

The company named in the AG’s press release is Corvus Law Group.

Here’s a copy of the letter.

The ads, which appear to be “notices,” may be mailed to homeowners or posted on their doors. Typically, the business asks for a “retainer fee” and may ask homeowners for their credit card numbers or offer to set up a weekly payment plan.

State and federal laws prohibit companies from charging upfront fees for foreclosure rescue or mortgage modification services.

Beginning September 1, it is unlawful in Idaho for a person to charge a fee, upfront or otherwise, for these services, unless the person offering the service is licensed with the Idaho Department of Finance or exempt from its licensing requirement.

“I encourage homeowners who have lost money to this business or other mortgage rescue companies to file complaints with my Consumer Protection Division,” Wasden said. Complaint forms are available at www.ag.idaho.gov or by calling (208) 334-2424.

The Attorney General’s Office recently updated its consumer education manuals regarding home buying and foreclosure prevention. The manuals are available at www.ag.idaho.gov.

Homeowners who are having difficulties paying their mortgage loans may qualify for a mortgage modification and can visit the federal government’s website at www.makinghomeaffordable.gov for an application packet. Idaho homeowners who are having difficulties communicating with their mortgage loan servicers about their loans can call the Idaho Attorney General’s housing specialist at (208) 334-4536 for assistance.

The US Department of Housing and Urban Development (HUD) also offers help to people having trouble paying their mortgage. For an office nearest you, go to www.hud.gov. Menu options at this time are placed on the left side of the page and include Avoid Foreclosure, Learn about Reverse Mortgages for Seniors, and Talk to a Housing Counselor.

Filed Under: Credit Related, Financing, Foreclosure, Mortgage and Loans, News, Short Sales

Market Update – August 2011 Distressed Sales Graph

August 30, 2011 By Leave a Comment

Below is a graph that shows the real estate activity in the Wood River Valley, i.e. Sun Valley, Elkhorn, Warm Springs, Ketchum, Hailey and Bellevue areas. The chart shows the percent of properties that are financially distressed properties, i.e. short sales and/or bank owned REOs. If you have any questions regarding the chart please feel free to call or email me.

Filed Under: REOs, Short Sales, Short Sales Tagged With: , , , , , ,

Banks Agree to More Short Sales

August 26, 2011 By Leave a Comment

U.S. homes nearing foreclosure accounted for 12 percent of total sales in the second quarter as banks agreed to more transactions at prices below the outstanding mortgage balance, RealtyTrac Inc. said.

The proportion of sales of homes in default or scheduled for auction rose from 10 percent a year earlier and was little changed from the first quarter, the Irvine, California-based information company said today in a report. Most of those were short sales, or transactions for less than the mortgage debt, according to RealtyTrac.

[pullquote_left]An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently[/pullquote_left]An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently, Chief Executive Officer James J. Saccacio said in the statement. Total pre-foreclosure deals rose 19 percent from the first quarter, while slipping 12 percent from a year earlier, when a federal tax credit pumped up demand.

“This is a glimmer of hope that lenders are getting more realistic,” Rick Sharga, senior vice president of RealtyTrac, said in a telephone interview. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

245 Days

Pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice, down from 256 days in the first quarter.

The average sale price was $192,129, a discount of 21 percent relative to non-distressed homes. Discounts averaged 17 percent in the first quarter and 14 percent a year earlier, according to RealtyTrac.

Sales of distressed properties, which also include homes seized by banks, totaled 265,087, down 11 percent from the second quarter of 2010 and up 6 percent from the previous three months.

The average price of all distressed homes sold in the second quarter was $164,217, down less than 1 percent from the previous period and almost 5 percent from a year earlier. Such properties sold at an average 32 percent discount, compared with a 27 percent discount in the first quarter.

RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.

SOURCE: Bloomberg

Filed Under: Foreclosure, Short Sales