Is There a Benefit using a Third Party Negotiating Company?

I have noticed that there has been an increase by York Pa Real Estate Agents using companies to negotiate a Short Sale for them. The reasoning behind it is that the vast majority of agents don't have a clue how to negotiate a successful short sale, so use a company to do it for them. On the surface most people probably don't see a reason why not to do that. 1. it save the agent time. 2 Agent can list a short sale and think they can make a commission. 3. The agent can tell the seller he has an experienced company handling it for them.

The problem with this strategy in my opinion is that the Seller could really get damaged by this type of procedure. First of all the Seller is in a distressed situation with the home potentially going to foreclosure. The Negotiation company charges a buyer a fee that in most cases the buyer is not willing to pay. This will mean the property will get few if any showings. Secondly if an offer does come in the Negotiating company starts the process, they do not know either the Seller or the Buyer. That means they have no personal rapport with either party and with that in mind when the Lender wants a lot of information so they can make a decision on the viability of the short sale the effort on the Negotiating company is less than satisfactory. The success ratio of such a company must be much less than what a Certified Distressed Property Expert will be able to offer. What is really troubling is that when an Real Estate Agent uses this type of company basically because they don't know what they are doing in regards to short sales, but they think they will get a commission paid to them if it is successful. Unfortunately this practice ultimately pushes the Seller into foreclosure. No one wins when that happens.

If you live in York, PA and in are facing foreclosure, please consider a Short Sale and put your situation in the hands of an experienced team The Pilgrim Team of Professional Realty Associates and be confident you made the right financial choice.

Break Free From Unaffordable Mortgage Payments!

Break Free From Unaffordable Mortgage Payments!

A recent study in Nevada (a state that holds the nation’s highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found the 1 in 4 homeowners chose to “strategically default,” or allow their homes to be foreclosed upon on purpose!

The Realtors Association of York and Adams County (RAYAC) and the local Multiple List Service report for York County that there are currently 3236 (Active) properties on the market as of May 24^th, 2011.  There are 371 Short Sales included in that total, and there have been 276 Bank Owned Properties that have closed or are pending settlement and 260 properties have sold since January 1^st. These numbers represent 536 total distressed properties or 27% of the properties sold.

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they’d soon realize that there’s nothing ‘strategic’ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.

Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I’ve seen this firsthand.

I can help with the education part—it’s up to you to contact me!

Stopping Foreclosures One Home Owner at a Time

FOR IMMEDIATE RELEASE For more information, please contact:

Jerry Pilgrim
717-757-5955
jpilgrim@pilgrimteam.com

Local Agent Takes a Stance Against Strategic Default Online report outlines the realities of “strategic default”—or walking away from a mortgage—and provides solutions for homeowners struggling to make mortgage payments in York County, PA.

York, PA - Local CDPE-designated agent, Jerry Pilgrim of Professional Realty Associates, has developed a website report providing information regarding the truth about a mortgage trend called “strategic default,” where homeowners walk away from their mortgages.
“There is a growing trend of distressed homeowners who have heard that a strategic default may be their best option,” Pilgrim said. “With this report, I’m showing homeowners that there are alternatives to foreclosure that can actually help them move on to a more stable financial future, rather than further damaging their credit, security clearance, or current or future employment.”

This community resource is available at www.YorkShortSales.com and explains the benefits of short sales, or selling a property for less than the current mortgage amount owed. Benefits include less damage to credit scores, and the ability to qualify for a future mortgage more quickly.

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index estimated that 36 percent of Americans would consider walking away from their mortgage if they were “underwater,” or owed more than the property was worth. Now that one in four Americans is currently underwater, Pilgrim sees the need for greater education.

“Individual homeowners as well as our entire community would suffer the consequences of strategic default,” Pilgrim said. “I can share solutions and alternatives that can help preserve the financial stability of distressed homeowners and the values of our neighborhoods.”

The CDPE Designation Pilgrim has acquired provides a specific understanding of the complex issues confronting distressed homeowners. Through comprehensive training and experience, CDPE-designated agents are able to provide solutions for homeowners facing financial hardship in today’s market.

To learn more, visit www.YorkShortSales.com.
For more information about the CDPE Designation, visit www. CDPE.com.

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Distressed Property Institute Stands Firmly Against Real Estate Fraud

Distressed Property Institute Stands Firmly Against Real Estate Fraud

Industry-leading organization publishes statements regarding mortgage modification scams, short sale flips, and other forms of fraud in the real estate industry.

The Distressed Property Institute, the premier organization educating real estate professionals on
how to help homeowners avoid foreclosure, is officially positioned against fraud in the real estate
industry, specifically as it pertains to mortgage modification scams, short sale flips and options
contracts.

“It is the firm stance of the Distressed Property Institute that fraudulent behavior perpetrated
against homeowners is deplorable, and there is no excuse for these actions, whether personal,
financial or otherwise,” said Alex Charfen, co-founder and CEO of the Institute. “The number
alleged cases of fraud against American homeowners is increasing, and in some areas arrests
are on the rise. We support the efforts of our administration and law enforcement to crack down
on these predatory practices.”

In 2009, the U.S. Treasury, U.S. Department of Justice, Federal Bureau of Investigation and
Federal Trade Commission issued statements affirming their unified stance on these issues:

• U.S. Department of Justice and U.S. Treasury Department
Press Release: April 6, 2009 – Federal, State Partners Announce Multi-Agency Crackdown Targeting Foreclosure Rescue Scams, Loan Modification Fraud

“This administration is deeply committed not just to providing at-risk homeowners with
assistance but also to cracking down on anyone who seeks to defraud them. … [The]
Treasury is also issuing an advisory alerting financial institutions to the risks of emerging
schemes related to loan modifications. The advisory identifies certain ‘red flags’ that may
indicate a loan modification or foreclosure rescue scam … Examples of possible signs of
fraudulent activity, such as requiring that fees be paid before services are provided, are
listed in the advisory.” i

• Federal Bureau of Investigation
Press Release: July 7, 2009 – FBI Issues 2008 Mortgage Fraud Report

“Mortgage fraud hurts borrowers, financial institutions, and legitimate homeowners. …
The FBI, in conjunction with our law enforcement, regulatory, and industry partners,
continues to diligently pursue perpetrators of mortgage fraud schemes.” ii

• Federal Trade Commission
Press Release: July 15, 2009 – Federal and State Agencies Target Mortgage
Foreclosure Rescue and Loan Modification Scams

“People facing foreclosure should avoid any company or individual that requires a fee in
advance, guarantees to stop a foreclosure or modify a loan, or advises the homeowner to
stop paying the mortgage company.” iii

• Freddie Mac
April 12, 2010 – Emerging Fraud Trends: Short Payoff Fraud

“Given increased defaults and declining property values in certain locations, the
mortgage industry is experiencing an increase in short payoffs, sometimes called short
sales. In fact, over the last two years, short payoff volume at Freddie Mac has grown
more than 1,000 percent (2007-2009). This upward trend in volume leaves the market
ripe for incidences of short payoff fraud.” iv

Addressing its membership organization of more than 22,500 real estate professionals
nationwide, the Institute has distributed this official statement among its members.

“Fear should not drive us to act ethically. The current market conditions have provided us with an
unprecedented privilege to help struggling homeowners like no other time we’ve seen. These
challenges are actually opportunities for us to become better agents, better citizens, and better people.

“Now more than ever, it is our personal responsibility to conduct our businesses and ourselves
with utmost integrity; this has never been more vital to the success of the real estate industry, the
recovery of our country, and to homeowners in need.

“We applaud the efforts of the branches of the U.S. government to stamp out this rampant fraud,
and have aligned the Institute with this goal. We will not tolerate the abuse and predatory actions
committed upon the most vulnerable homeowners.”

Following is the Institute’s policy on fraudulent behavior as it pertains to mortgage modifications
and short sale flips:

I. Mortgage Modification Fraud

It is the policy of the Distressed Property Institute not to educate or train students onthe process of facilitating a mortgage modification, beyond directing agents to have clients (homeowners) contact their lenders if a modification appears to be an option, and providing general information on mortgage modifications so homeowners can effectively contact lenders and pursue this option.

The Institute does not support, nor does it condone, the practice of agents accepting a fee for the service of facilitating a mortgage modification, even if there is a promise to refund the fee if the service expectation is not met. Our official stance is that thispractice constitutes fraud, which is in line with statements made by the U.S. Treasury Department.

II. Short Sale Flip (and Options Contracts) Fraud
It is the policy of the Distressed Property Institute not to educate or train students on the process of flipping short sale properties beyond providing a severe warning, which includes a basic overview of this process and detailed information on how to avoid unknowingly participating in fraudulent activity.

The Institute does not support, nor does it condone, the practice of flipping short sale properties due to the potential illegalities and blatant unethical nature of these transactions. We do make an exception in the case of rehabilitation projects – however, this process involves providing a measureable service to improve the condition of the property, and is different than the standard short sale flip.

“The Distressed Property Institute seeks to train agents on how to find the best solution for each individual homeowner,” Charfen said. “Agents who charge a fee for a service they’re not licensed or adequately trained to provide, and which the government has identified as fraudulent, cannot be tolerated.

“Additionally, agents or investors who misrepresent the true value of a short sale property, or participate in less than full-disclosure with the lender, are participating in fraudulent activity. These practices are not in line with our core values.”

About the Distressed Property Institute, LLC
The Distressed Property Institute trains real estate professionals to engage with and assist homeowners facing hardships. The Institute has developed a curriculum to provide the tools and knowledge to handle distressed properties, including short sales, deeds-in-lieu, mortgage modifications, forbearance, refinances, reinstatements, government programs or other options. After completing a comprehensive live or online course, graduates are awarded the Certified Distressed Property Expert® Designation.

About the CDPE Designation
The CDPE Designation provides real estate industry professionals with detailed information onhow to engage with and assist homeowners in distress. The CDPE designation has been endorsed by RE/MAX International, Keller Williams Realty and other major U.S. brokerages, as well as industry icons such as: Dave Liniger, chairman and co-founder of RE/MAX; Allen Chiang, Chairman of the Asian Real Estate Association of America (AREAA); Steve de Laveaga, Senior Vice President of Fidelity National Title; and Tino Diaz, Chairman and President of the National Association of Hispanic Real Estate Professionals (NAHREP).

For more information about the Distressed Property Institute and the CDPE Designation, visit http://www.cdpe.com./

i http://www.usdoj.gov/opa/pr/2009/April/09-opa-311.html
ii http://www.fbi.gov/pressrel/pressrel09/mortgage_070709.htm
iii http://www.ftc.gov/opa/2009/07/loanlies.shtm
iv http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html

© Copyright The Distressed Property Institute, LLC April 2010 Originally Published: July, 17, 2009
Updated: April 12, 2010
The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. TheDistressed Property Institute, LLC is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

FANNIE MAE MAKES NEW REGULATIONS ON STRATEGIC DEFAULTS

FANNIE MAE HAS COME UP WITH NEW STRATEGY ON HANDLING STRATEGIC DEFAULTS

Homeowners across the country and here in York, PA are hearing about the so called advantages of walking away form their financial obligation (mortgage) on their home. Fannie mae has decided that they will not take this lightly when a homeowner has the ability to pay their mortgage, yet deciides not to. Fannie Mae announced they will not allow a homeowner to be eligible for a Fannie Mae backed loan for at least 7 years. They also have said that if a state that allows a deficiency judgement (Pennsylvania does) they will do just that. Fannie Mae is letting homeowners know they will not take this lightly and pursue a claim against these homwowners.

Think twice about how this can adversely affect their ability to get new credit and also could cause an potential or even a existing employer to hire or retain that person due to the foreclosure and judgement on the credit report.