Short Sale Fraud - Second lien holders asking to be paid off the HUD settlement statement

In order for a short sale with two loans to happen, the second lien holder has to drop the lien.
If they don't, and there's no short sale, the home goes to foreclosure and the first lien holder gets the house because second liens are subordinated debt to the primary loan.
In short, the second lien holder gets nothing. In order to get the second lien holder to drop the lien, the first lien holder generally negotiates some partial payment to the second lien holder. The second lien holder doesn't have to agree, but more and more are doing so.
That's all legal.
But here's what's not legal and what's apparently happening quite often recently. Since many second lien holders are getting very little, they are now allegedly requesting money on the side from either real estate agents or the buyers in the short sale. When I say "on the side," I mean in cash, off the HUD settlement statements, so the first lien holder doesn't see it.
"They are pretty clear and pretty upfront about the fact that if the first lender knows they are getting paid, the first lender will kill the short sale," says Brandt. "So these second lenders are asking for the payments off the closing documents, off the HUD statement, usually in a cashiers check prior to closing. Once they receive that payment, they will allow the short sale to go through, which according to RESPA laws and the lawyers that we have spoken to on the topic is not legal."

Read the entire story by Diana Olick:
http://kathleeninarizona.com/archive_details.php?arch=771

Highest Foreclosure Rates by State

Foreclosure Rates
Foreclosure filings, defined as a default notice, bank repossession or auction sale notice, were up almost 14 percent in December 2009 from the previous month, and showed an 15-percent increase from a year ago, according to Realty Trac's U.S. Foreclosure Market Report. In December 2009, one in every 366 households in the country had received a foreclosure filing.
1. Nevada
Rate: One in every 94 households
2. Arizona
Rate: One in every 132 households
3. Florida
Rate: One in every 158 households
4. Idaho
Rate: One in every 159 households
5. California
Rate: One in every 165
6. Utah
Rate: One in every 200 households
7. Michigan
Rate: One in every 225 households
8. Illinois
Rate: One in every 294 households
9. Georgia
Rate: 1 in every
10. Hawaii
Rate: 1 in every 330 households

Real Estate Housing Market Predictions for 2010

All I want for Christmas is a crystal ball this year. When I hear reports that the housing market has hit bottom, or that the market is on its way up I start to feel a sense of hope just like everyone else. Unfortunately, there are so many other factors that I look at every time I hear this news. Such as:

Mortgage Delinquencies, The Shadow Market, Unemployment rates, Success rate of loan modifications, Number of Pending Foreclosures, Guidelines for Mortgage products, Mortgage Interest Rates, and the big one --HOW many people are willing to ride out this wave and not just walk away from their home(s) next year?

Here are my recent concerns:
-November reported the highest number of mortgage delinquencies in history.
-Pending Foreclosures are on the rise.
-Daily increases in Bank Owned inventory has started to hit the market.
-Reports of between 40% - 63.5% is the average negative equity in the Phoenix area.
-High unemployment rates and decreased pay for those that have jobs.
-Number of Individuals that can qualify for a mortgage


My wish this holiday season, is that everyone be blessed with much health and strength so we can work very hard together in preserving Homeownership.

Sometimes we just need a bit of humor

"Our new house has one down payment and 240 darn payments".

Mortgage Delinquencies hit record high

According to the Mortgage Bankers Association survey, November reached the highest level of mortgage delinquencies in history. Job losses seem to be contributing to the rise of mortgage payment delinquencies. Read more: http://kathleeninarizona.com/archive_details.php?arch=742. It is no surprise that 4.5% of US Homes are in foreclusre today.

Another factor to consider; approximately 15 million homeowners are underwater and want to just "walk away" and are doing it. Many are burdened by too much debt, changes in employment, and just don't qualify for a loan modification. The newest plan that just came out is a "Deed in lieu of lease". How does this new plan help preserve homeownership? Read more: http://kathleeninarizona.com/lease-f26628.html

Is it not our goal to help Americans PRESERVE HOMEOWNERSHIP?

New bill to be signed by President Obama to extend first-time homebuyer credit

GOOD NEWS!!

A new bill is waiting for President Obama's signature to extend the first-time home buyer credit, increase the income limit to $125k for an individual and $225k combined for a married couple. The bill will also add a new credit of $6,500 for existing buyers that have lived in their current home for at least five years.

Read the entire article:
http://kathleeninarizona.com/archive_details.php?arch=737

Anthem Country Club Home JUST LISTED $220k

ANTHEM COUNTRY CLUB $220k 2 brdm+Den, 2 Bath, Gently lived in, second home for owner in the ANTHEM COUNTRY CLUB beautifully decorated, furnishings available by separate bill of sale. Located on a private cul-de-sac, desert wash on north and east side of property. Enjoy views of Daisy Mountain from covered patio. Call 623-776-6217 to view this home. See more at http://2140wvalhallact.com/

Kathleen Mazzocco and Anthem, AZ featured on HGTV House Hunters tonight

Anthem, AZ and Kathleen Mazzocco, Realtor are featured on HGTV House Hunters tonight.
Kim & John Bojonny relocate from Maryland to Phoenix, AZ. Check your local listings for time.

Read the article published in the Images Magazine about the making of the show:
http://www.kathleeninarizona.com/archive_details.php?arch=717

View show highlights.
http://www.kathleeninarizona.com/hgtv-c11568.html

Which home do you think the couple from Maryland will choose?

Which Cities in Phoenix, AZ are most affordable?

Have you ever wondered which Cities in the Phoenix area are the least and most affordable?

The Cromford Report ranks cities in the Phoenix, AZ area by annual average price per square foot and also details the change in appreciation/depreciation for each city for the last year.

click this link to view report: http://kathleeninarizona.com/archive_details.php?arch=716

Scottsdale Luxury Lender Owned Home Coming on the Market Soon

Preview this bank owned Scottsdale GEM! Luxury semi-custom home built by TW Lewis on 1.25 acres. Too many upgrades to list. Approx. 4,231 sq. ft., 5 bdrm, 3.5 bath, Separate Guest Casita in backyard, LAP POOL w/waterfall feature, 4 car garage w/surround sound! Entertain family and friends outdoors near pool on the raised patio with built-in BBQ, fireplace, and plenty of seating! Guest rooms share a den w/built-in media niche and full Jack-n-Jill bath.

Call Kathleen to preview this home today 623.776.6217. Best value in the Peakview Trails subdivision.

For more information and photos go to:
http://foreclosuresinscottsdaleaz.com/