Archive for September, 2015

Rescissions Are Stopping Foreclosures All Across The Country

Last month it was in California, this month it was in South Carolina. All across the country we are seeing rescission letters stopping foreclosures in their tracks. Over the last few months I have been writing about how effective a Truth in Lending Act (TILA) rescission of your mortgage could be, and how the banks are getting nervous. Well, the results keep coming in, and they are extremely encouraging!

One of my real estate investor students recently explained to his father how he might be able to use rescission to stop the foreclosure on his home. His father sent in a rescission letter and the 20-day period for the bank to respond went by without a peep from the bank or their attorney. When the auction day came up, the investor and his father went to the courthouse and explained to the judge about the rescission and the Supreme Court’s ruling on the matter. The judge pushed their auction to the end of the day in order to move onto other houses. At the end of the day, the judge asked for a copy of the Supreme Court decision to review it. After reviewing the decision, he canceled the auction and called for a new hearing.

On many of our deals we are well past the 20-day window for the banks to challenge the rescission in court. On the deals where we have heard back, not once has the bank actually gone forward with a legal defense. Instead they are sending letters stating that they are not accepting the rescission. If you have been reading my articles, you know that that letter is completely irrelevant! The bank has no right to approve or deny a rescission! Their only course of action is to prove in court that they complied with ALL of TILA’s requirements, and that they have the standing to foreclose on the property. Sending a letter to the homeowner isn’t worth the stamp.

The other tactic we are seeing is the banks are using fear and intimidation to scare homeowners who have rescinded their loans. The banks are calling homeowners or their attorneys and demanding to be paid back all of the money that was lent out before complying with the rescission. This is another case where the bank doesn’t have a legal leg to stand on. It is very clear in the statute that the lender must comply completely with all three of the duties spelled out by TILA before they can demand payment from the homeowner. This means that the banks must provide the homeowner with the canceled note, a release and satisfaction of the mortgage or deed of trust, and return ALL of the money ever paid on the loan, including principal, interest, fees, and anything paid to anyone in the origination process of the loan.

The banks are acting tough because they are scared. The law has caught up to them, and they are hoping they can bully homeowners out of their rights. This is why they’re sending out letters acting like they can simply decide not to agree to the rescission, and why they’re demanding money before fulfilling their legal requirements.

Not only does this provide homeowners with a powerful tool to stop foreclosure and stay in their house longer, it also creates an opportunity for investors to do some pretty amazing deals. During those 20 days, the bank could be more willing to negotiate the terms of the loan, or to sell it at a discount to an investor. The tides have turned and the banks are being forced to negotiate on our terms. No more begging the banks to accept our short sale and REO offers only to have them demand ridiculously high prices. We can now get the banks to the table and demand that they prove they have the right to enforce a loan.

This makes it more important than ever that homeowners and real estate investors act NOW. This is a massive opportunity for real estate investors. If you know of anyone with a defaulted or underwater note, you need to get in contact with my office immediately at (706)-485-0162. I have spent the last two years building up a team of experienced attorneys and fraud examiners/forensic auditors who specialize in exposing fraud committed in the mortgage process and using that fraud as leverage to negotiate the sale of notes. This opportunity is not going to be available forever; we need to strike while the iron is hot!

We have a huge opportunity to help homeowners and do some great deals with multiple exit strategies. For more information, call me at 706-485-0162

Bob MasseyBob Massey is a recovering corporate executive who is now living the dream running his own successful real estate investing business and teaching others how to do the same. In the process he has become the nation’s leading educator on the foreclosure investing process.

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Got Needles In Your Haystack? Search Like An Expert

“With Google I’m starting to burn out on knowing the answer to everything. People in the year 2020 are going to be nostalgic for the sensation of feeling clueless.”
~ Douglas Coupland

Go to your computer right now and Google “real estate.” Go ahead, I dare you. Care to guess how many results you’ll get? Well, I just tried it, and I got 1.1 billion results. That’s billion with a b. Talk about information overload!

You’re pretty sophisticated, though, so you know not to try that kind of a mushy search. And you already know that you can search specifically for images and videos. You also realize that Google is pretty good at guessing what you’re looking for, and it will usually put those results first. But not always: If you search for “bronco,” Google won’t know whether to give you information about cars, football, or rodeos.

Luckily, you can tweak your searches to be surprisingly precise, if you know how. Here are some tricks for searching on Google that I’ve found useful. I’m concentrating on Google because it’s so popular, but some of these will work in other search engines, too.

Use search commands. Let’s say you want to know something about how many people there are in your zip code. A government source would be great, because you’d like some official statistics. Good news! You can narrow your search results to government websites. Try this search: POPULATION 30308 SITE:CENSUS.GOV. This tells Google to limit its results to pages within the Census Bureau’s website. By putting in that extra command, you cut the results from 131,000 to 650.

You can also use the same command to limit your results to a particular type of domain. For example, adding SITE:.EDU to your search will limit results to educational sources. Caution, though: you’ll also get results from student websites, and .edu can be used by some pretty uneducational entities.

Here are some more handy commands you can try: INTITLE: will search only in the title of webpages, which may get you to sites that are specifically about your topic. LINK: will get you websites that have links to a particular web page. If you’re looking for an exact phrase, put it in quotations. Boolean terms like AND and OR also work in Google. Putting a hyphen in front of a word will keep out results that have that word.

Find the missing word. Let’s say you want to use a famous quote, but you’re not sure exactly how it goes: “Something is ______ in the state of Denmark.” (Icky? Smelly? Stinko?) Just Insert an asterisk in the place of the unknown word, like this: SOMETHING IS * IN THE STATE OF DENMARK. You’ll learn that the word you’re looking for is “rotten.”

Take advantage of other search engines. Google isn’t the only game in town, you know. There’s Bing.com and DuckDuckGo.com, among others. (DuckDuckGo, by the way, is the way to go if you want maximum privacy, because it doesn’t keep information about anyone’s searches.) There are also “metasearch” engines that will search other search engines. For example, Dogpile.com will search Google, Yahoo, and others, all at once.

Even within Google, you can narrow your results by using specialized search engines. For example, https://news.google.com/news/advanced_news_search will let you limit your results to news sources. Google Scholar will get you court cases and academic papers.

There are tons of search engines out there. Want a search engine that’s specific to real estate? Try searching “REAL ESTATE” “SEARCH ENGINES” and you’ll find some great resources.

Use the advanced search. Have I given you brain freeze with this information? If it all sounds too “techie” to remember, then forget everything I just said, because Google’s advanced search is for you. Just go to Google.com and click on “settings,” and then on “advanced search.” You’ll get a search form that gives you all kinds of nifty options. Many search engines have advanced-search capabilities of one kind or another – look for a link.

There are many, many more search tricks you can use, and I can cover only a small fraction of them here. But now maybe you have a better idea of what’s possible.

Want to know more? Of course you do, and I’ll bet you know what I’m about to suggest.

Why, ask any ten-year-old kid, of course. They’ll know way more than I do. In the meantime, happy searching!

Don DeRosaDon DeRosa is recognized as one of the nation’s top 21 real estate investors in the New York Times bestseller “The Millionaire Real Estate Investor”. Don, who is a full-time investor, trainer, and mentor, is the first to offer his complete investing system on a mobile platform. Don teaches investors how to Make More and Work Less by being more efficient, productive and competitive, leveraging mobile technology and apps on the iPad, iPhone, Android and other mobile devices.

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