Real Estate Foreclosure Scam Artist

 

Although this story centers around a scam artist in Southern California, be aware… scams like this are happening everywhere, not just in Southern California.

 

Los Angeles CBS reporter David Goldstein offers help in this video on convicted felon Raul Altamirano.  This video runs 4:28 but is well worth your time to see how you can prevent such scam artists from duping you, and just how low some scum bags will stoop to take advantage of people going through a tough time financially.

 

 

Tell us what you think about this report.  We'd love to hear your comment by using the "comment" link below.

 

 

 

Counting on Higher Mortgage Limits? Be Patient

 

Homeowners are already calling their lenders about refinancing, and ads are pushing the idea that the congressional economic rescue plan offers the perfect time to get a loan.

 

But it could be weeks before consumers will be able to benefit from the mortgage provisions contained in the legislation approved by Congress.

 

The bill, known as the Economic Stimulus Act of 2008, will temporarily increase the limits on loans backed by government-sponsored mortgage financing companies known as Fannie Mae and Freddie Mac, and on Federal Housing Administration loans, to as much as $729,750. These loans typically carry lower interest rates.

 

The U.S. Department of Housing and Urban Development has up to 30 days from the time the bill becomes law to decide what loan limits apply in various parts of the country.

 

Rates for "jumbo" or non-conforming loans, those of more than $417,000, are more than a percentage point higher now than rates for conforming loans - the biggest spread in the past decade.

 

The stimulus plan also will allow the FHA to guarantee loans of up to $729,750.  Before the boom in subprime lending, FHA loans were the first choice of borrowers with damaged credit and little down payment.

 

 

 

A Quick Home Inspection Checklist

 

With home prices dropping in many areas, home inspectors are finding more and more homes which are less maintained today than they were in the past.  Home buyers are cautioned to keep this in mind when searching for a home, and use this quick home inspection list as a reference when looking at property:

 

EXTERIOR
Check the operation of the windows and screens?
Has water been stopped from accumulating near the building?
Check doors, decks, siding, windows & fences for damage / deterioration?
Are there any signs of water infiltration from the roof, siding or windows?
Are there any signs of gutter or downspout problems?
Are the downspouts discharging water away from the foundation?
Has the soil around the home been pitched away from the foundation?

 

INTERIOR
Have all the areas listed in the home inspection report as inaccessible or not traversed been accessed & professionally inspected to determine if defects exist?
Do the garage doors and their openers function?
Was the reversing devices for the garage door openers tested?
Did you find out why any stains or cracks on any of the walls or ceilings that have become larger or have appeared since the time of the home inspection?    
Have all cracked windows or mirrors been repaired?
Have all the clouded double pane windows been replaced?
Are all the permanently installed fixtures or appliances been in place and in good condition?
Are there any signs of birds, rodents or animals?
Has any damage to damage to the walls, floor or ceilings been repaired?

 

PLUMBING
Do the plumbing fixture faucets leak or drip?
Are the plumbing fixtures chipped or damaged?
Was water for a time through all plumbing fixtures and check for leakage?    
Was water for a time through all plumbing fixtures and check for stoppage?

 

ELECTRICAL
Are all the light fixtures are all in place?
Do the light fixtures, switches and receptacles all function?
Does the door bell work?

 

HEATING AND COOLING
Do the thermostat, heating and cooling systems function?
Is there adequate air flow through the heating and cooling registers?
Did all the radiators or convectors get warm in a reasonable amount of time?

 

KITCHEN
Do all the appliances function properly?
Are the counter tops or cabinets damaged?
Do the cabinets and drawers operate?

 

In the end, remember, never buy a home without having a professional home inspector review things under the microscope.

 

 

Can't Make the Mortgage Payment? Just Walk Away?

 

More and more borrowers are watching their house values sink while the cost of their loans skyrockets.  What to do?  It appears that some are opting to skip out on the mortgage all together.

 

Homeowners are abandoning their homes and, more importantly, their mortgages, rather than trying to keep up with rising payments on deteriorating assets.  So many people are handing their keys back to lenders that a new term has been coined for it:  "Jingle Mail."

 

Current lending practices have created an environment where a measure as extreme as abandoning a home actually makes sense to some people.

 

Many home buyers put little or no money down, so they don't have much invested in them.  This leaves them with little incentive to keep making payments when a home's market value dips below the balance of the mortgage.

 

The most serious consequence is a tremendous hit to credit scores.  But for some, that's better than throwing away money they'll never recover by selling their home.

 

Credit scores are hurt much more by missing multiple payments - on credit cards, cars and so on - than by a single foreclosure.

 

According to Craig Watts, a spokesman for the credit reporting firm Fair Isaac, "The time it takes to regain your credit score [after foreclosure] can be shorter than after bankruptcy."

 

Lenders are afraid that borrowers may find it's worth the hit to their credit scores, if they can drastically reduce their housing expenses.  Someone with good credit and a $600,000 home in a town with sinking real estate prices could buy a similar house nearby for $400,000, and then let the other $600,000 mortgage go into foreclosure.

 

Now, skipping out on a home is easier, thanks to the Mortgage Debt Relief Act of 2007.  Previously, if a bank sold a foreclosed home for less than the mortgage balance and it forgave the difference, the borrower had to pay tax on that difference as if it were income.  Now the IRS will ignore it.

 

Here's a brief CBS News 60 Minutes clip that shows this is really happening (Clip only runs 1:10)

 

 

Leave us your comments on this article and the video below… we'd love to hear your thoughts on this topic.

 

 

 

Time to Think About Tax Help

 

We're smack in the middle of tax season again.  Many people fill out the short form, mail it in, and are done with it.  Good for you.  Lots of us have more complicated financial lives.  In many cases, those complications will be handled by a hired tax professional.  But some people really like to do their own taxes.  For you, there's plenty of help online.

 

When you're ready to file your federal taxes, you can do it online.  The IRS wants more taxpayers to file electronically, so it has teamed up with tax preparation software companies such as TaxCut, TaxAct, and TurboTax.

 

Together, they offer free e-filing services.  You must meet certain requirements to qualify for free filing.

 

First, your adjusted gross income must be $54,000 or less.  There are also age and residency requirements, and other criteria may apply.

 

Start at www.IRS.gov.  Type this address in your browser.  It is the only way to ensure you'll go to the IRS's official site.

 

Once there, you'll get help choosing software that suits your needs.  Then, you'll be directed to the software company's site.

 

The software walks you through doing your taxes.  Forget about finding the correct forms.  All you need are your financial papers.  The software performs the calculations for you.  So you're less likely to make math mistakes.

 

Don't qualify for free filing?  You can still find tax filing software at the IRS's site.  You just have to pay for it, along with e-filing fees.

 

Don't forget your state taxes!  You may be able to file those with your federal taxes.  Some companies offer free state filing.  But, in many cases, you'll be charged to file your state return.

 

Make sure your computer's security software is current before preparing your taxes and scan your computer for spyware and other threats.

 

Remember, criminals love tax season.  Watch for phony e-mail messages purporting to come from the IRS.  Just delete the messages.  Don't click links or call numbers in e-mail.  The IRS will never contact you via e-mail.

 

Finally, if your taxes are complicated, consult an expert.  Paying for professional help is better than facing an audit!