Comments on: Real Estate Short Sale - should owner sign a Land Trust and Limited Power of Attorney? http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney Learn how to stop mortgage foreclosure Thu, 09 Feb 2012 04:43:14 +0000 http://wordpress.org/?v=2.5.1 By: teran_realtor http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1236 teran_realtor Fri, 05 Mar 2010 16:44:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1236 Yeah. What satarnag said. Do that.<br><b>References : </b><br> Yeah. What satarnag said. Do that.
References :

]]> By: satarnag01 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1235 satarnag01 Fri, 05 Mar 2010 15:57:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1235 You are correct to be concerned. I am very experienced and knowledgeable in short sales and schemes. Here is what I think they are doing. The company is trying to get ownership of the property (not good) so they can lowball the lender (which is fine) and then rent it back to a tenant buyer. They might bring the mortgage current and not even do a short sale or just short sale the second and bring the first current (depending on what makes sense). So basically they will either rent it back to the ex-husband and promise that he can buy it back in 1-3 years (or whatever) or rent it to another tenant who will purchase it in the future. Using a land trust is smart as it protects the owner in case if the tenant doesn't pay rent. It also hides the owner's identity and it allows the tenant to write off the mortgage interest which I am sure they will have the tenant pay the property taxes. In California, it is illegal for a real estate agent or broker to ask for a power of attorney. Seeing how a licensed agent or broker has a fiduciary duty to their clients, I think a law like that might exist in your state as well. I would advise against signing a power of attorney and to read over every contract BEFORE signing it. This company is out to make money and they could care less about the ex-husband or your friend. In fact maybe the ex is hoping to get the property back without having to deal with your friend. There is just too much potential for both the company and the ex and I would tread carefully. One last thing: Power of attorney and a land trust are not needed for a short sale. A short sale only needs the following: 1. HUD-1 (expense sheet) 2. Financial Worksheet of borrower including tax returns, bank statements and paycheck stubs. 3. Hardship letter explaining why you can't pay the mortgage 4. Listing agreement 5. Purchase offer 6. Authorization to release information Good Luck and it's good that your friend has someone smart like you watching over her. <br><b>References : </b><br>I am a CA Licensed Real Estate Broker specializing in helping people in foreclosure and helping people purchase foreclosures. You are correct to be concerned. I am very experienced and knowledgeable in short sales and schemes. Here is what I think they are doing. The company is trying to get ownership of the property (not good) so they can lowball the lender (which is fine) and then rent it back to a tenant buyer. They might bring the mortgage current and not even do a short sale or just short sale the second and bring the first current (depending on what makes sense). So basically they will either rent it back to the ex-husband and promise that he can buy it back in 1-3 years (or whatever) or rent it to another tenant who will purchase it in the future. Using a land trust is smart as it protects the owner in case if the tenant doesn’t pay rent. It also hides the owner’s identity and it allows the tenant to write off the mortgage interest which I am sure they will have the tenant pay the property taxes.

In California, it is illegal for a real estate agent or broker to ask for a power of attorney. Seeing how a licensed agent or broker has a fiduciary duty to their clients, I think a law like that might exist in your state as well.

I would advise against signing a power of attorney and to read over every contract BEFORE signing it. This company is out to make money and they could care less about the ex-husband or your friend. In fact maybe the ex is hoping to get the property back without having to deal with your friend. There is just too much potential for both the company and the ex and I would tread carefully.

One last thing: Power of attorney and a land trust are not needed for a short sale. A short sale only needs the following:
1. HUD-1 (expense sheet)
2. Financial Worksheet of borrower including tax returns, bank statements and paycheck stubs.
3. Hardship letter explaining why you can’t pay the mortgage
4. Listing agreement
5. Purchase offer
6. Authorization to release information

Good Luck and it’s good that your friend has someone smart like you watching over her.

References :
I am a CA Licensed Real Estate Broker specializing in helping people in foreclosure and helping people purchase foreclosures.

]]> By: mjohnsonre1 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1234 mjohnsonre1 Fri, 05 Mar 2010 15:21:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1234 First of all no Realtor should put them selves in that situation. You did right by telling your friend that she should do that. I would go to the Real Estate Division and talk to them and to their association that they belong to. She need to talk to an attorney and yes she and her ex are still responsible for the home until something is done. There is other ways that they can save the home by either a loan modification but have them not do that. In this case I would say SELLER beware. I am a Realtor and my gut feeling says something is wrong with this picture. There is a site called www.justanswer.com can help I believe. They can ask an attorney there.<br><b>References : </b><br>www.justanswer.com First of all no Realtor should put them selves in that situation. You did right by telling your friend that she should do that. I would go to the Real Estate Division and talk to them and to their association that they belong to. She need to talk to an attorney and yes she and her ex are still responsible for the home until something is done. There is other ways that they can save the home by either a loan modification but have them not do that. In this case I would say SELLER beware. I am a Realtor and my gut feeling says something is wrong with this picture. There is a site called http://www.justanswer.com can help I believe. They can ask an attorney there.
References :
http://www.justanswer.com

]]> By: ali2inc http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1233 ali2inc Fri, 05 Mar 2010 15:13:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/real-estate-short-sale-should-owner-sign-a-land-trust-and-limited-power-of-attorney#comment-1233 I had a similar situation with a house I owned I didn't need to sign any documents until the sale went through. You can ask realtors to sell it for you quickly or some companies buy it now but for less money. <br><b>References : </b><br> I had a similar situation with a house I owned I didn’t need to sign any documents until the sale went through. You can ask realtors to sell it for you quickly or some companies buy it now but for less money.

References :

]]>