The following are variuos articles relating to Lending, Collecting or Foreclosure
issues. If you have a question relating to Lending, collecting or Foreclosure please fill out the form below.
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Lending, Collecting & Foreclosure Issues
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Personal Guarantee: An Anchor that Could Bring Down the Unsuspecting June,
2008
Many participants in the real estate market have signed personal guarantees in the course of doing business.
It may have been in connection with purchasing property or borrowing money for a business. At
the time the risk did not seem great and it was just part of doing business. Today many individuals
in the real estate world, even if they are doing well, are looking at their personal guarantee(s) as anchors that may bring
them down even they are otherwise doing well.....
To read the rest of this article click here
2007 Predatory Lending Laws August 2007 As of August 1st a new set of laws dealing with mortgage lending (by amendment to Minnesota Chapter 58) became
effective. Mortgage brokers and loan officers must become familiar with these changes and incorporate them into their business.
In many ways, the new laws will fundamentally change the mortgage industry.....
To read the rest of this article click here
Who Picks the Appraiser? Another Change in the Real Estate World March
2007
Another change in the real estate world was announced on March 3, 2008. As of January 1, 2009, single-family
mortgage loans (except government-insured loans) originated and delivered to Fannie Mae or Freddie Mac will be prohibited
from choosing or communicating with appraisers.
To read the rest of this article click here
Seller Disclosure Exceptions February 2007 Did you know that the Seller’s
Property Disclosure form is not always required by law in certain types of transactions? While the seller may voluntarily
provide disclosures regarding the condition of the property in those situations, they are not mandatory and may do more to
create problems than to avoid them.......
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What Standards Apply to Those Doing Loan Modifications? February
2009 It seems like any time you turn
on the TV or listen to the radio nowadays, we are constantly being bombarded by loan modification advertisements by companies
promising to save your home. Who are these companies and what requirements do they need in order to
qualify to be such saviors? The Minnesota Department of Commerce issued a press release stating that
only those with a residential mortgage origination license could qualify to negotiate of loan modification. The
Minnesota Attorney General has already brought claims against twelve companies for their loan modification actions applying
the “foreclosure consultant” statute passed into law in Minnesota in 2004.
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Foreclosure Posponement: A New Option for Homeowners
August
8, 2009 A major change to Minnesota foreclosure law became effective on June 15, 2009. Under the newly revised
law, the foreclosure sale can be delayed for five months. After the five month period expires, there will be a five week
redemption period. This artilce will address who qualifies for a postponement, how you get the postponement and whether the
postponement will help or hurt the homeowner. To read the rest of this article Mortgage Foreclosure: An Overview September 2006 Mortgages can by foreclosed by
advertisement or by action. A foreclosure by advertisement does not involve the court system. A foreclosure by action requires
that a lawsuit be commenced and the foreclosure goes through the court system. The vast majority of foreclosures are done
by advertisement so the following is an overview of a foreclosure by advertisement.......
To read the rest of this article click here
Mortgage Foreclosures: Equity Stripping October 2006 Last month we wrote about mortgage foreclosures. This month we discuss equity stripping. Equity stripping
has become so prevalent in Minnesota that the Minnesota legislature enacted a new law (MN Statute Section 325N) in 2004 in
direct response to the problem. The statute has two basic targets: one, purchasers who buy property in foreclosure and as
a part of the deal promise to sell the property back to the homeowner , and, two, the person who promises to help the homeowner
in foreclosure save the property, stop the foreclosure or save the homeowners' credit rating along with other similar
services. It is the second target that will be the focus of this article since many real estate agents unknowingly fall into
this part of the statute.......
To read the rest of this article click here
Foreclosure
Purchase Risks Versus Gains Buying a foreclosure can be a smart purchase for the right buyer; however, buying a foreclosed property
is not a traditional purchase. You have to be prepared to take greater risks than you normally take in a traditional purchase. The left column lists various
potential risks of purchasing a foreclosure. The right column lists various potential advantages of purchasing a foreclosure.
The middle columns lists ways that you may be able to "manage" the potential risks. To learn more about foreclosure
purchase risks versus gains, click here. Mortgage Foreclosures: The Reconveyance Statute November 2006 This is the last in a series of articles addressing mortgage foreclosure. Our focus is on representing
the investor looking for foreclosure property. There is no shortage of inventory (Minnesota foreclosures
were up 26% last year) or “Get Rich Quick” seminars focusing on distressed properties. Consider the
background of your buyer. Is he/she sophisticated and knowledgeable regarding foreclosures? Is your client excited
about the possibilities but clueless about the process or details of what he/she is doing?.......
Foreclosure by Advertisement, Foreclosure
by Action and Voluntary Foreclosures When money is lent a lender often requires collateral to be given by the borrower
so that the lender can seize the collateral if the borrower defaults. The collateral of choice for most lenders is real
property since real property cannot be moved, is difficult to hidden and tend to retain its value over time. Personal
property, on the other hand, can be easily moved, hidden and can lose value quickly. In Minnesota a mortgage is used
to when real estate is the collateral. In the mortgage the borrower agrees to use the described real property as collateral
for the defined loan and gives the lender the right to foreclose the mortgage and become the owner of the real estate if there
is a default in the loan that the real estate is being used to secure. To read about the different
types of foreclosures in Minnesota, click here. Foreclosure Update: Is the Short Sale on the Way Out? May
2008 There are many misunderstandings when
it comes to foreclosures. People confuse what lenders have voluntarily done with what they are required to do.
This can lead to horrible surprises for the real estate professional and their clients. |
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