The real estate crisis has spared no city and few streets. Evidence of homes lost to foreclosure is within a 60-second drive of most people reading this column. Outright con artists have ripped off desperate families with one promise after another, soaking them with advance-paid fee scams for loan modifications which never materialized.

Millions of Americans are asking: “Should we try to save our home or let it just go into foreclosure, and if that happens, then what? What is the truth about loan modification? Why does our bank tell us so many different things? Can anyone do something to help us, or at least provide realistic guidance that we can trust?”

“I’ll tell you what’s also cruel, and it’s where families who could have been helped became victims of incompetent real estate salespeople who didn’t have a clue what to do. This is why who you speak with when facing foreclosure is so critical,” maintains Dick Jacques of Hanford, the president of the Kings County Board of Realtors and a real estate professional for over 32 years.

Duty to look out for your best interest

“A Realtor will tell it like it is and is here to help, but far too often, we just do not come to mind soon enough,” Jacques told me when we discussed the plight of a reader whose home was days away from foreclosure.

“It is important to understand that Realtors are held to a much higher standard than real estate agents or brokers who have not acquired that distinction. In these rapidly evolving financial times, anyone at risk of foreclosure needs someone who is both experienced and duty bound to look out for what is in their best interests, not to simply close a deal and earn a commission. That’s what a Realtor offers,” he points out.

“The world of real estate is very much the Wild West, especially in this foreclosure crisis. Most people have no idea just how ridiculously easy it is to become a licensed real estate agent in California and, once licensed, to do real damage.”

He’s right. Few people would consider allowing a “doctor” to touch them who had three months training and passed a test which only requires 70 percent correct answers. But anyone can sign up for a cheap Internet-based course, and three months later take a three-hour, multiple-choice test which only requires getting 70 percent correct in order to be licensed.

You and the Law has spoken with a number of people in the Department of Real Estate, as well as Consumer Affairs, who believe far too many people have entered this field, that they know too little, and because of this – even under the supervision of a broker – do a great deal of harm.

Why a code of ethics matters

“Someone who is a member of the California and National Association of Realtors not only has years of experience, but – and this is so important today – must adhere to a strict code of ethics which offers significant consumer protection,” Jacques told me.

“Of course, you don’t have to be a Realtor to be licensed to sell real estate. There are, of course, competent people in this business who are not Realtors, but the critical problem today is that we have so many people who simply obtain a license and then get well over their heads in complicated transactions.”

“They present themselves as experts with the knowledge to guide clients which way they should go. The major problem that the Department of Real Estate has is with licensed real estate agents who are not Realtors. They do not need to follow our code of ethics.”

“The code of ethics is important and governs how Realtors must conduct themselves in a transaction with other Realtors, and how they must conduct themselves with the public at large. Realtors are monitored. If a real estate agent does something against the interest of a consumer, we cannot do much. But Realtors have a professional standards committee which offers real consumer protection,” he maintains.

“When a consumer comes in with a complaint about a Realtor, it goes first to an ombudsman who will try to find a way to cure the situation informally. If not remedied, a grievance committee will then look into the matter, attempt to verify the complaint and pass it along to a professional standards board which conducts a hearing.”

You and the Law has seen first-hand that Realtors will pursue other Realtors for wrongdoing.

“Penalties we assess can range from that Realtor being ordered to make a refund to the injured consumer, to expulsion from the board – losing the Realtor title – and even to passing the matter along to the Department of Real Estate for an investigation by State authorities,” he stated.

Next time: What to expect when you ask a Realtor to help stop your foreclosure.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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You and I both know of a problem in our neighborhoods. It’s that vacant house on the corner — in foreclosure, abandoned by the family who used to live there. They could not afford to make the payments and simply moved out.

The swimming pool became a breeding ground for mosquitoes, and the house itself has invited graffiti and vandalism.

In virtually every American town, it’s the same thing. But it’s different when that vacant house has a direct impact on your home. It was indeed different for Ron Hall of Hanford.

“The people in back of me have left unexpectedly,” his e-mail began. “They were only in the house a couple of years and we never had any problems. Our two homes are separated by an old fashioned redwood fence located on my property. Unless kept properly trimmed, a massive growth of Oleanders on the neighbor’s side leans on the fence, and I am worried that it will collapse from the weight of those shrubs,” he wrote.

“Over the past many years, the people who lived there would have them trimmed every year or two, to prevent damage to my fence. In fact, the couple who just moved out did the same thing, having the tree trimmers perform the work from both my side of the fence and theirs.”

“This work needs to be done before spring, and it could easily cost over $500. I am retired and isn’t something that I am all that eager to pay for. Who is responsible for the costs involved? How can I find out who owns the house now? And equally important, if necessary, may I legally send a tree trimmer onto their property to perform the work required to save my fence?”

When I received Ron’s e-mail, I called him. Writing this column allows me to speak with so many interesting, genuine people, and Ron fit both categories well. Retired now after years at sea as a ship’s radio operator, he lives in the same home in which he grew up.

“My daddy built that fence. While old and worn it still stands. There is so much history that fence has seen. It is something I feel a need to protect,” he told me.

I understood those feelings. The longer we talked — especially about his life at sea — the happier I was that he took the time to e-mail me. He got an answer to his legal questions; I was allowed a glimpse into a solitary man’s interesting life. It was a fair trade.

“There are a number of ways to determine who own a vacant house,” Bakersfield private investigator Riley Parker told me. “And, for the average person, no out-of-pocket expense is necessary, just some time and shoe leather.

“Begin with a visit to the tax assessor’s office, or phone call. Provide them with the address, and they can tell you who currently owns the property. If it has gone through a foreclosure, the name of the bank or lending institution will be shown.

“Often customer service departments at title insurance companies will provide that information over the phone, and at no charge. This is a service they offer their customers — the real estate industry — but if you are polite, chances are they’ll help you,” he added.

“However, you could have a situation where the house was abandoned, or someone died or just moved out, and it is not in foreclosure. It could be tied up in an estate or legal dispute of some kind, with varying claims of ownership. These are far more complicated issues, and if it’s worth the added expense, a private investigator has ways of locating individuals and family members using proprietary data bases to find a wealth of information on virtually anyone,” Mr. Parker pointed out.

“Unless it is necessary to physically visit the property, in general, this kind of research would take less than two hours of the investigator’s time, with billing rates which range from $50 to $125 per hour. So, you really need to weigh if hiring an investigator is worth it,” he stressed.

Vacant homes can be little more than an eyesore to becoming temporary residences for squatters. Some lenders — notably, Wells Fargo Mortgage — have an entire division whose task it is to maintain their foreclosed properties, while far too many others do nothing. A few cities have passed legislation requiring the owner record to look after these public nuisances.

Of course, even if my reader locates the current owner — be it an individual or corporate-this does not mean anything will be done in time to save the redwood fence. Ron’s most appropriate remedy is what we call: self help. That’s quite literally, taking the law into his own hands, without waiting for a judge to give permission.

All sates allow homeowners to trim overhanging branches, but in a way which does not damage the neighbor’s tree. When we get into encroaching roots or huge limbs, caution is critical. California allows chopping off the offending roots if this does not injure the neighbor’s tree. That’s why it’s generally a good idea to consult with a certified arborist before grabbing your chain saw. Courts can award triple damages for hurting or killing a neighbor’s tree.

But Ron’s isn’t the typical “tree” case. While there may be some branches which overhang the fence, we’ve got “a hundred feet or so of shrubs leaning on the old redwood fence,” as he explained. “As those oleanders grow, as they do every spring and summer, there is a point where the fence will no longer support the weight and will break,” he fears.

While technically a trespass, in this type of situation, my legal opinion would be for the tree trimmers to go into the neighbor’s backyard in order to save the fence. Practically speaking, if they do a good job and harm nothing else, there is a valid reason to be on the neighbor’s property.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post Problem in our neighborhoods, foreclosures appeared first on Dennis Beaver.

“Getting the right kind of help when faced with foreclosure is like finding the right doctor for a complicated medical issue,” maintains Dick Jacques, president of the Kings County Board of Realtors.

“You need someone who is both experienced and current, with significant resources enabling quick answers to the most complex foreclosure or loan modification questions. Today, more than ever in the past, you want that real estate professional to reflect a real obligation to tell it like it is and put your interests ahead of their own financial considerations. Right now, with our worsening foreclosure crisis, who you ask for help can be the single most important factor in a positive outcome,” he believes.

“Real estate has been my life for over 32 years. I’ve never seen it as bad as it is now, and what really makes me so angry is to see what happens when people are given the wrong advice, lose critical time and would have saved their home had they only spoken with the right person.”

To Jacques, that “person” has earned the designation of Realtor.

There are, of course, competent real estate professionals who have not achieved that status, but especially now — where we are talking about foreclosure — You and the Law completely agrees with Jacques based upon reports from our readers over the past two years.

Headed for trouble?

There are basically two types of foreclosure situations:

1. The buyer has not made the payments, and the house is actually in foreclosure and at risk to be sold at auction, or

2. Buyers are just about to default on their payments.

“It’s where you are not yet in trouble where so much can very likely be done to help, if you’ve got people on your team who know who to contact,” he points out.

“This is the time to renegotiate — not just loan terms and interest rate — but even the purchase price itself if the value of your house has fallen considerably. A Realtor or experienced real estate attorney will contact the right people. Now you have someone speaking for you. It is simply crucial to reach high level management with the power and knowledge to change the loan.

“Before you’ve sunk deeply into the quicksand of default and foreclosure, while payments are still being made — but you know that trouble is right around the corner — this is the time to get a Realtor involved. Banks are much more willing to move significantly when a homeowner is proactive.”

I asked Jacques, “What about the situation where you are behind in payments and the property is either in foreclosure or about to be sold. You paid $300,000 and now it’s worth less than half of that?”

“Begin by contacting a Realtor and ask for a property valuation, which you will be given at no cost. Then you have a choice: Put the home on the market looking at a short sale, or contact the lender, and say, ‘Look, I owe you $300,000, but a local Realtor says it’s worth half. He is willing to list the property and contact you for a short sale, but I would like to buy it for $200,000.’ This would be an actual loan modification, and a Realtor can help with this entire process.”

“It can be a simple process, but extremely frustrating for an inexperienced homeowner if the lender is not cooperative. Today, banks want to deal. They don’t want to hold the property. This is all the more reason to take advantage of the resource which Realtors offer. We are equipped and well-qualified to assist people in this endeavor.”

Who should just walk away?

“There were millions of families who should have never been qualified for loans. Property values went up drastically in 2005 and 2006 due to cheap money, lack of oversight in loans, and lenders were sucking in people who should never have been allowed to buy such overvalued, expensive homes. If you had a pulse, you qualified,” Jacques commented.

“When adjustable rate mortgages kicked in, payments rose dramatically and buyers could not pay. That is what started the foreclosure explosion. Property values went down drastically, way below 2005 values.”

“So, if you paid $350,000 and now the home is worth around $200,000, it can make sense to walk away if the bank will not renegotiate everything. Realtors know that some people are best advised to simply give a deed in lieu of foreclosure, or just walk away. Realtors will level with you. We will tell you what you need to hear,” Jacques concluded.

Indeed, for anyone in this situation, don’t go looking to hear what you want to hear from that real estate professional. You’re in the right place if you find a nearly empty box of Kleenex on their desk.

Dennis Beaver practices law in Bakersfield and welcomes comments and questions from readers, you will find our contact form and information here.

“Getting the right kind of help when faced with foreclosure is like finding the right doctor for a complicated medical issue,” maintains Dick Jacques, president of the Kings County Board of Realtors.

“You need someone who is both experienced and current, with significant resources enabling quick answers to the most complex foreclosure or loan modification questions. Today, more than ever in the past, you want that real estate professional to reflect a real obligation to tell it like it is and put your interests ahead of their own financial considerations. Right now, with our worsening foreclosure crisis, who you ask for help can be the single most important factor in a positive outcome,” he believes.

“Real estate has been my life for over 32 years. I’ve never seen it as bad as it is now, and what really makes me so angry is to see what happens when people are given the wrong advice, lose critical time and would have saved their home had they only spoken with the right person.”

To Jacques, that “person” has earned the designation of Realtor.

There are, of course, competent real estate professionals who have not achieved that status, but especially now – where we are talking about foreclosure – You and the Law completely agrees with Jacques based upon reports from our readers over the past two years.

Headed for trouble?

There are basically two types of foreclosure situations:

1. The buyer has not made the payments, and the house is actually in foreclosure and at risk to be sold at auction, or

2. Buyers are just about to default on their payments.

“It’s where you are not yet in trouble where so much can very likely be done to help, if you’ve got people on your team who know who to contact,” he points out.

“This is the time to renegotiate – not just loan terms and interest rate – but even the purchase price itself if the value of your house has fallen considerably. A Realtor or experienced real estate attorney will contact the right people. Now you have someone speaking for you. It is simply crucial to reach high level management with the power and knowledge to change the loan.

“Before you’ve sunk deeply into the quicksand of default and foreclosure, while payments are still being made – but you know that trouble is right around the corner – this is the time to get a Realtor involved. Banks are much more willing to move significantly when a homeowner is proactive.”

I asked Jacques, “What about the situation where you are behind in payments and the property is either in foreclosure or about to be sold. You paid $300,000 and now it’s worth less than half of that?”

“Begin by contacting a Realtor and ask for a property valuation, which you will be given at no cost. Then you have a choice: Put the home on the market looking at a short sale, or contact the lender, and say, ‘Look, I owe you $300,000, but a local Realtor says it’s worth half. He is willing to list the property and contact you for a short sale, but I would like to buy it for $200,000.’ This would be an actual loan modification, and a Realtor can help with this entire process.”

“It can be a simple process, but extremely frustrating for an inexperienced homeowner if the lender is not cooperative. Today, banks want to deal. They don’t want to hold the property. This is all the more reason to take advantage of the resource which Realtors offer. We are equipped and well-qualified to assist people in this endeavor.”

Who should just walk away?

“There were millions of families who should have never been qualified for loans. Property values went up drastically in 2005 and 2006 due to cheap money, lack of oversight in loans, and lenders were sucking in people who should never have been allowed to buy such overvalued, expensive homes. If you had a pulse, you qualified,” Jacques commented.

“When adjustable rate mortgages kicked in, payments rose dramatically and buyers could not pay. That is what started the foreclosure explosion. Property values went down drastically, way below 2005 values.”

“So, if you paid $350,000 and now the home is worth around $200,000, it can make sense to walk away if the bank will not renegotiate everything. Realtors know that some people are best advised to simply give a deed in lieu of foreclosure, or just walk away. Realtors will level with you. We will tell you what you need to hear,” Jacques concluded.

Indeed, for anyone in this situation, don’t go looking to hear what you want to hear from that real estate professional. You’re in the right place if you find a nearly empty box of Kleenex on their desk.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

The post What to do if you’re facing foreclosure appeared first on Dennis Beaver.