Dear Michael: I was told by my lender when I refinanced that there was not going to be any point fees nor loan fees. When it was time for me to sign the loan documents I was charged both of these fees. Who can I contact to file a complaint about lending fraud?
Answer: Let me reassure you that this unfortunate incident does not happen often. Lenders are held at a high standard of ethics. Your first step is to ask to speak with the manager of the bank. If you cannot get an explanation or an answer you will need to contact the mortgage insurance fraud dept. The Fraud Enforcement and Recovery Act of 2009, or FERA, enacted May 20, 2009. The law heightened criminal enforcement of federal fraud laws, especially regarding financial institutions, mortgage fraud, and securities fraud or commodities fraud. Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have not been obtained had the lender or borrower known the truth. A wide range of activity can constitute mortgage fraud, and state laws that punish the crime differ significantly. Some states do not have specific mortgage fraud law, while others do. Regardless, all states have laws that punish the type of activity that occurs in mortgage fraud. Please contact a real estate attorney for further evaluation.
Dear Michael: I wanted to purchase a specific home when my Realtor talked me out of it saying the price was too high. Now I regret my decision. Can you advise me on how to respond to my Realtors advice so this does not happen again?
Answer: Sorry that you missed out on an opportunity. Trust me, there will be other homes for you. It’s time for you to decide if your Realtor is the right Realtor for you? He/she should have explained pricing based on comparable for the area. Given this information it would then be up to you to decide whether or not you would be willing to pay for the home and by how much, even if the price was higher than the areas comparable. If you love a specific home and determine that it is worth what the seller is asking for it and you are willing to pay this “higher price,” then no one should argue your decision. Over the past few years many buyers may have felt they overpaid for their home at the time of purchase. Given the year-over-year increase on real estate prices, these same buyers are now feeling that the purchase of their home was well worth it!
Dear Michael: I just listed my home for sale and we got an offer within 2 days. It is a very good offer and over asking. Should I accept it or wait and see if anymore offers will be coming my way?
Answer: Consider yourself lucky you have received an offer in such a short period of time. We are in a seller’s market. Waiting for additional offers to come in could be a good strategy if you don’t mind risking the loss of your current buyer. Waiting could also back-fire as this may be your best offer. The last thing you want is to lose this buyer and end up with a lower priced offer. Sometimes “holding off” is just not worth it and sometimes it is. Your Realtor can help you make this decision. If you have a “good offer” above asking and are satisfied with the terms, then I recommend accepting it. When you close escrow you’ll be glad you accepted it and moved on.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
