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No Verbal Promises Or Commitments Accepted

January 26th, 2009 by Temple City Tribune

The law does require that a lender communicate with a borrower who is in trouble 30 days before the property is to go into foreclosure.   Reason for such a communication is for the lender to attempt to see if there is a possibility of working out some agreement for the current property owner to remain in the property.  They may be able to workout some price reduction, a new fixed interest rate that is affordable to the borrower, a possible extension of the loan period or a combination of each of those possibilities.  Only if a program cannot be worked out, can the lender proceed with the foreclosure process.  Remember, any agreement must be in writing and signed by both the mortgage holder and the property owner.
If you have already spoken to the lender, and possibly worked out any of the above that would assist you in holding on to the property, be certain that before you proceed to make any payments or to even pay-up any past due payments, and that any agreement be in writing and signed by the lender.  There are already cases where agreements were made, the lender or mortgage holder would send an unsigned confirmation to the borrower, and the borrower proceeds to make some form of payment and still loses the property.  Why? It was because an authorized person from the lender did not sign the confirmation.
Such a case has been reported.  The borrower did file legal action against the lender, but since the agreement was not signed the borrower lost.  If you would like more information about this case, simply send me your address and the report will be mailed to you at no charge.

MORE REAL ESTATE QUESTIONS:

Q) If a residential condo is listed for sale with a real estate agent and the number of units listed on the fact sheet left for prospective buyers lists, say 77 units, when in fact there are only 40 units in the complex, is there any law, rule, rhyme or reason why the sheet cannot be changed to reflect the accurate information?

A) Since I am unaware of the development that you are referring to, it is very possible that the information given by the listing agent could be correct.  In my market there are a number of developments with a 150 – 200 condos, or more, and would have a number of different Boards of Directors.  One such development has 176 condos and five different Board of Directors, a different board for every phase of the development.
I am now assuming that you are correct and that there are only 40 units in the entire development.  It is the listing agents responsibility to properly correct any misinformation in the Multiple Listing Service (MLS).  Most agents’ flyers are printed from the MLS.  It is very possible that the agent was not given the correct information from the seller, but once he/she is made aware of the error, making the correction is very simple; takes little time and could make it easier for the agent to sell the property.
If the agent is not local, meaning that the seller has listed the property with an agent who does not live in the immediate area, have an office in the area or knowledge of the area, it is possible that the agent just inserted information given him/her by the seller.  If such, it is very possible that the agent would not have correct information.  Any local agent, noticing an error with information placed into the MLS can advise the listing agent of the error so that corrections can be made.  Remember, information in the MLS is supposed to be as accurate as possible, yet the disclosure advises that a buyer should verify any item in question.
Ethics requires that errors be corrected as quickly as possible, but there are no fines, punishment or even a slap on the hand that a Board of Realtors® can do against the listing agent.  It does bother me, as it would any professional real estate agent, when advised of an error that the agent does not make a correction quickly.

SOME CHANGES IN THE LAW:

If a tenant is victim of domestic violence, sexual assault, or stalking, the tenant can terminate a tenancy upon giving a 30-day written notice to the landlord.  This law took effect September 27, 2008 and will sunset on January 1, 2012.  This is Assembly Bill 2052.
Here is a good law, and wished that it went into effect immediately rather than January 1, 2009.  Any person or private entity with which a live animal has been “involuntarily deposited” must take charge of it, if able to do so, and immediately notify animal control officials to retrieve the animal.  This is Assembly Bill 2949.

ANOTHER QUESTION ABOUT REVERSE MORTGAGES:

Q) Our home has been appraised for $750,000.  Based on what you had previously written, does that mean that we would receive $525,000 from the bank doing the reverse mortgage for us?
A) It is really important that you confirm this answer with your lender.  What I had previously written was an example as to how much, on average, a person could expect to receive.  Much has to do on the age of the person requesting the reverse mortgage.  An older person, say in their mid 70’s, may receive more than a person who is in their mid 60’s.  Age of property is also a consideration.  One banker has informed me (in New York) that the most a person could receive is $417,000, while lenders in California say that there is really no maximum.  In my previous example a person would receive 70% of the properties appraised value, yet, the actual amount could be less.  Much depends on your age, and on the property that you will be receiving the reverse mortgage.  So working with a reliable lender is extremely important.
Louis Perlin CRS, GRI is a Syndicated writer, Author, Professional Real Estate Witness and Mediator.  Lou can be reached by calling (760) 327-8401 or by e-mail: mprltr@aol.com <mailto:mprltr@aol.com>   Lou is also available for real estate office meeting, or for public book signings, where 50% of all profits are donated to local charities.

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