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.

Local Agent Provides Resource on Foreclosure Alternatives, Short Sales

FOR IMMEDIATE RELEASE For more information, please contact:


Jerry Pilgrim
The Pilgrim Team
Professional Realty Associates
717-757-5955
jpilgrim@PilgrimTeam.com

Local Agent Provides Resource on Foreclosure Alternatives, Short Sales

For homeowners struggling with mortgage payments, website explains differences between foreclosure and short sales.

York, PA – 11-15-2010– Local CDPE-designated agent, Jerry Pilgrim of Professional Realty Associates, has released an informational report comparing the consequences of a short sale and foreclosure.

The report can be found at http://www.stopyorkpaforeclosure.com/ and provides a thorough explanation of how a short sale may potentially improve a homeowner’s future financial stability.

“Considering how damaging foreclosure can be for the homeowner and the surrounding community, it is important that everyone knows all of the alternatives available,” Pilgrim said. “This report is the latest addition to my website, which gives distressed homeowners a way to inform themselves on their best options.”

Currently, one in seven mortgages is in some stage of delinquency. Once a mortgage payment has been missed, the lender has the ability to begin the foreclosure process. A short sale can potentially minimize the damage to one’s future loan eligibility, credit score, employment, security clearance and more.

“We often see homeowners enter the foreclosure process without any visible means of professional guidance,” Pilgrim said. “My hope is to inform the community that there are legal, dignified alternatives to foreclosure.”

The CDPE designation provides real estate agents with the tools and knowledge needed to efficiently, ethically and effectively pursue foreclosure alternatives, specifically short sales. In addition to their initial training, CDPE-designated agents are connected to a network of professionals via the Distressed Property Institute, allowing them to remain regularly updated on the complex and quickly changing real estate market.

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

The Neighborhood of Fountainhead

Anybody who is considering buying a home in York County Pennsylvania should stay informed by keeping up with my Blog. I will be describing Communities throughout the York area. I will be adding useful information on communities that will include the average price ranges, Lot sizes and area information.

Today I want to talk about the Community of Fountainhead located in York Township. It is a small neighborhood that consists of 26 lots that range in size from 1/3 acre to the largest being nearly 3/4 acre.

Home prices are typically in the low $300's to over $450,000. The predominant house style is the two story colonial with some brick and stucco exterior on the fronts and beaded vinyl siding making up the balance. Ray Markey Builders is and was the Builder of the neighborhood. The Builder is know for his innovative building materials that keep up with the latest trends in new construction. One of Ray's better known standard features include the ICF foundations. It is a foundation that comes nearly completed for drywall and is very energy efficient and also very water resistant. the quality of construction is second to none.

The neighborhood of Fountainhead is located near I-83 south of Useful Information about York PA, and is an easy commute for Baltimore bound people. It is also located near Apple Hill Medical Center which is a Well-Span campus that is more reminiscent of a indoor mall than a medical facility. You will find many indoor walkers using the area for their daily exercise and then stopping for a meal and sit down to meet neighbors. OSS is another medical facility that is within a mile that is primarily where Orthopedic Surgeons treat patients with back and spinal, and joint problems. They have recently opened a new wing that allows for overnight stays for patients.

Fountainhead is alos located in the Dallastown Area School District. The District is known for its achievements in Academics in particular Science and Math. There are just about any sports offered the students that range form Football, Wrestling, Basketball, Soccer, Swimming, Tennis, Golf, Field Hockey, Volleyball, Lacrosse and more.

So if you are looking for a charming neighborhood in a excellent setting with nearby ameneties check it out you won't be disappointed.

Real Estate Investing Now is as Good as It Gets!

If you are an Investor or have been thinking of becoming a Real Estate Investor it is time to act on you ambition. There has been know better time then now to get a positive cash flow on your investment. Whether you pay cash or want to levarge your monetary investment by financing, I can show you properties that will generate long term or even short term positive cash flow. Call Jerry Pilgrim about York PA real estate property and I will be able to provide you a Cash Flow Analysis in detail on how iI can achieve your real estate goals. I am a CIAS (Certified Investor Agent Specialist) a exclusive designation that only a few have nationwide. Stay tuned for deatils in the near future.

National Distresses Property Numbers for Quarter 2 of 2010

The statistics below are for the National Real Estate Market. I track these numbers to get a better of what can be predicted in the future regarding pricing of homes. As you will see because there is so much inventory yet to be sold nationally and here in York, I believe that we can expect some further depreciation of value on real estate here unfortunately. If you would want more specific information on the current market value on your property contact Jerry Pilgrim at Professional Realty Associates for a complimentary home value analysis.



National Numbers for all current FHA Mortgage Loans in the 2nd quarter 2010

3.62% in Foreclosure, 12.63% in Default (30+ days late) which means there is a Total of 16.25% FHA properties in distress.

National Numbers, VA Loans 2nd quarter 2010

2.50% in Foreclosure, 7.48% in Default (30+ days late) for a Total of 9.98%

National Numbers for Subprime Loans 2nd quarter 2010

14.38% in Foreclosure, 25.90% in default (30+ days late) which is a Total of 40.28% properties in distress

National Numbers for Prime Loans 2nd quarter 2010

3.49% in Foreclosure, 6.66% in Default (30+ days late) for a Total of 10.15% properties in distress

National Numbers 2nd quarter 2010

4.57% in Foreclosure, 9.40% in default (30+ days late) for a Total of 13.97%

National Numbers all Mortgages

Total Distressed Properties 6,216,650

Total Predicted sales 3,830,000


* Numbers provided by the Mortgage Bankers Association, based on 44.5 million mortgages, non-seasonally adjusted

The numbers above indicate a national inventory of 19+ months properties to be sold. Keep in mind real estate is a local market so the numbers will vary from area to area. Here in York County PA we currently hava 17 month inventory based on local MLS statistics.

Real Estate Market Trends - The Pilgrim Team

New, Existing-Homes Sales On Rise

The National Association of Realtors® (NAR) reported a 7.6 percent increase in existing-home sales for the month of August, to a seasonally adjusted rate of 4.13 million units anticipated in 2010. The increase was higher than many experts predicted, as real estate markets showed strong activity even without the home buyer tax credit. Regionally, the West showed the biggest increase in existing-home sales, with a jump of 13.8 percent. The Northeast followed with an increase of 7.9 percent, while the South and Midwest grew sales by 5.2 and 5.0 percent respectively.

NAR chief economist Lawrence Yun remains cautiously optimistic. "The housing market is trying to recover on its own power without the home buyer tax credit," he said. "Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the home buyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own."

Freddie Mac reported that the average commitment rate for a 30-year fixed-rate mortgage dropped to 4.43 percent in August, a record low. The rate was 5.19 percent during this time last year. Total housing inventory fell slightly to 3.98 million units, representing an 11.6 month supply.

First time buyers accounted for 31 percent of the homes purchased during August. Investors also had a strong showing, accounting for 21 percent of the market, up from 19 percent the month before. Repeat buyers acounted for the remaining 48 percent of August home purchases.

Find the Right Coverage

When purchasing a home, you will need to acquire homeowners insurance. In fact, all lenders will require a policy be in force prior to funding the loan. Make sure you have enough coverage, should anything happen. Policies refer to "replacement costs" that may not cover everything. You should ask your insurance agent a lot of "what if" questions. The deductible amount also plays a big part in setting your premium. Higher deductibles lower the number of claims, and reduce your insurance costs.

Check with your insurance agent for more information on these issues, and any others. If you don't have an insurance agent, we have access to several top-notch agents we can refer you to with confidence.

Seller Opportunities

Selling your home in today's market requires strategy and execution. Here are three tips to help sellers reduce their time on market:

•Make it shine. Buyers are attracted to attractive homes. Make your home stand out by mowing the lawn, raking the leaves, washing windows, and cleaning the carpets. These are small things that will make a big difference.

•Remove clutter. Not only do clean homes show better, but tidy homes offer more to the imagination. One person's treasure is another person's trash. Removing unnecessary clutter will help potential buyers envision their own potential or the home.

•Pay attention to the market. Work with your agent and price your home to sell. A competitively priced home is the one that sells first, and in this market that counts for a lot.

These simple tips can help you sell your home and take advantage of our today's market. Please contact us if you have any questions about selling your home. We are here to help!

Real Estate Market - The Pilgrim Team - Professional Realty Associates Real Estate in York PA, Homes for Sale in York PA, Home listings, York MLS, Relocation, Short Sales

Real Estate Market - The Pilgrim Team - Professional Realty Associates Real Estate in York PA, Homes for Sale in York PA, Home listings, York MLS, Relocation, Short Sales

York Rail Trail

If you are the type of person who likes to get out for a walk, try the York Heritage rail Trail. It is perfect for walking, jogging or bicycling. You can begin in York and head south o the Maryland state line. The trail follows along the Old Northern Central Railway. This is an historic stretch of countryside.  Abraham Lincoln is the most notable when he traveled the line form Washington D.C. to Gettysburg to give the Gettysburg Address. He used it a second time when his funeral train made its way through. The King and Queen of England also traveled on the line. During World War II troop trains used the rail to move our men and women to far off destinations.

The rail line is still there and maybe someday may have a excursion train running again. Plans are in the works as of this writing.  Next time you want a scenic get away you don't have to go far to find this local York County treasure!

The Pilgrim Team Introduces Fox Run Creek Estates

The Pilgrim Team of Professional Realty Associates is proud to announce Lancaster Home Builders Newest Community located in Dover Towship in York County PA. Lancaster Home Builders is offering 13 home floor plans priced from the Mid $150's. House designns include Rancher, Two Story, Cape Cod. The Builder will work with the home buyer in some floor plan modifications so that the homeowner can modify a particular design to fit their individual needs and requirements. The Sales Representative is Jerry Pilgrim Broker of Professional Realty Associates located in York, PA.




Open houses will begin in early November on weekends, but appointments can be arraigned to meet with a representative to tour different floor plans throughout the week. Bring your own house design and we will be glad to work with you.



Fox Run Creek Estates is located in an area of York County wit gently rolling hills with scenic vistas of the Skytop area north of Dover, PA. Parks including Pinchot State Park, Ski Roundtop are nearby. For more information visit us at: Fox Run Creek

Hidden Costs of Bankruptcy

Hidden Costs of Bankruptcy: "Considering filing for bankruptcy? There may be alternatives you've never considered …
If you are having trouble paying your mortgage and are possibly considering bankruptcy, there may be better solutions for your particular circumstances. I've created the free report available on this page, 'The Hidden Costs of Bankruptcy,' to provide more information.
Alternatives to foreclosure, such as conducting a short sale and moving into a rental residence with less expensive payments, may offer the breathing room you need to reorganize your finances.
To get your free report, fill out the form below and click send. However, if your situation is urgent and you need immediate assistance, please don't hesitate to contact me.
I'm here to assist you.




Homeowner Resources
Get Your FREE Report!
What is a CDPE®?
Learn how agents with the Certified Distressed Property Expert® designation are best suited to help distressed homeowners.Contact This CDPE®
Jerry Pilgrim
Professional Realty Associates
3921 E Market St
York, PA 17402

717-757-5955
www.StopYorkPaForeclosure.com"

York PA July 2009 and July 2010 Real Estate Comparison Report

Home Sales Comparisons for July 2009 and July 2010 in York County PA



July 2009

Homes sold = 407, Total new listings = 859, average list price sold was $189,141 and sold price was $183,511, Average unsold median price was $228,398.

July 2010

Homes sold = 271, Total new listings = 741, average list price sold was $176,203 and sold price was $170,014, Average unsold median price was $370,201. The amount of time it will take the market to absorb the current inventory (3,220) would be 11.88 months.

As you can see that there was a -33% decrease in sales from a year ago. With a total inventory of 3,220 currently unsold homes, properties must be positioned at the correct price or the market (buyers) will reject the over priced properties. Most surprising is the huge jump in the unsold median price of homes ($370,201) which is a indication that the upper price brackets are not selling and continue to build in the inventory of homes. This is an alarming trend that must be reversed sooner rather than later.

With the current interest rates hovering in the low 4's NOW is the time to buy a home at low prices and with potentially low principle and interest payments. I believe the current economic uncertainty must be cleared up and property taxes always on the rise are putting a damper effect on higher end homes. Something must be done in Harrisburg soon or we face a worsening crisis with high end homes.

Short On Space? Make The Most With What You Have!

One of the most common complaints that homeowners have is the lack of space. The home that had lots of space when you first bought it has seem to shrunk over the years. It could be that your family is growing or you just find that your needs have changed over the years and suddenly your home is too small and you need more space. If purchasing a new home with more space is not in your plans, you can still utilize the space you have with some helpful hints below!

Utilize attic and basement storage. If you can gauge the temp and moisture levels in both attics and basements, they can be great places to store many things. Of course if your basement is susepable to moisture, storing items that can be effected by mold wont work. However, many things like old toys, sports equipment or small furniture can be stored no problem. Now, if you have no attic and no basement, but you have a lot of wall space, you could consider utilizing wall shelving units for things like books or pictures.

Utilize your closets. The problem a lot of people have with their closets is that they put too much in here and they don't utilize all the space available. If you need to reorganize your closet, it's a good idea to get your hands on some shoe racks, clothing bags (with hangers), storage systems, containers, etc. Try using some jewelry boxes as well for your earrings, watches, and necklaces. Storage systems are really popular right now for closets and most can be customize for your specific needs.

Don't overlook hidden space. The solution to finding extra space can be found in the areas you might have not thought about before. Some ideas are building drawers and shelves beneath a staircase or installing ceiling shelving units in the garage. Nooks and corners you may have thought were useless might end up being the extra space you need!



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Neighborhood Crime Watch

One of the oldest and best-known crime prevention concepts in North America is called Neighborhood Watch. It is also one of the most efficient and least costly ways to prevent crime and reduce fear. Neighborhood watch is a group of neighbors looking out for their fellow neighbors, and these types of groups have been shown to reduce crime by 50%.

This program empowers homeowners to become active in protecting their community through participation in Neighborhood Watch groups. Residents participate in Neighborhood Watch in their area by organizing residents to communicate any suspicious behavior to others by phone trees and reporting it to the authorities.

Benefits of Neighborhood Watch

•Your risk of being burglarized as well as other crimes such as auto theft, vandalism and personal assault are significantly reduced.
•By helping with this program you help to stretch the tax dollars by helping law enforcement agencies, who are limited in their available manpower.
•Participation causes not only neighborhood crime to go down, but many communities report a new feeling of caring and belonging amongst neighbors. Many have used their combined efforts to improve their streets, recreation opportunities and local services.

If you are interested in starting a neighborhood watch in your community, below are some steps to help you get started!

•Form a small planning committee of neighbors to discuss the needs of your community, gage the level of interest and potential problems, decide on a date and place for an initial Neighborhood Watch meeting
•Contact Your Local Sheriffs Office or Police Department for more information or to arrange a speaker
•Arrange a meeting location close to your neighborhood. It should have enough room to hold your invited neighbors and, if needed, for the use of audio visual aids such as an overhead projector.
• For more information and educational materials related to starting a Neighborhood Watch, visit the program's website.

Second Mortgage Modification

Although the media is reporting that the recession is getting better, the economy is still in recovery. There are still thousands of homeowners who are struggling to make mortgage and ends meet. Many homeowners have had not only modify their first mortgage but also take a second mortgage in order to make ends meet, but now making that payment on top of all the other growing expenses can leave many struggling. There may be some help for those homeowners who are in this situation.

The 2nd Lien Modification Program (2MP) may be just what you need. A few large institutions have already signed on to the 2MP program: Bank of America (and Countrywide), CitiMortgage, Chase (with EMC and WaMu), and Wells Fargo (and Wachovia). More are expected to join this growing list.

Below are some of the eligibility requirements:

• You have a second mortgage on your home and:
• Your first mortgage has been modified under HAMP
• Your second mortgage provider is one of the participating banks
• Your second lien was originated on January 1, 2009, or earlier
• Your second lien has an unpaid principal balance of $5,000 or more and a monthly payment of $100 or more
• The second lien servicer has a 2MP modification agreement or trial period plan in place for you by December 31, 2012

Interest rates are reduced to 1-2%, depending on the type of second lien you have. The term of the loan can be extended to 40 years. Even better, a 2MP servicer can even forgive all or part of the second lien, which means your debt is reduced or removed.

There are some restrictions. You can’t participate if your mortgage is subordinate to a second lien, or if it is a home equity loan in first lien position. 2MP is also not for you if you don’t have to make payments on your second lien or interest is charged until the first is paid in full. Liens insured, guaranteed or held by a Federal agency like FHA, HUD, VA, or Rural Development aren’t covered under 2MP.

If you qualify, however, it can be a financial lifesaver. To learn more, contact your mortgage provider or a housing counselor through HUD.

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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.