Category Archives: Real Estate News

Craigslist Scams: How They Work

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We advertise our listings on many websites, including Craigslist. In the past few months we’ve had a couple of our listings scammed by thieves looking for an easy buck. The most recent is our listing at 19532 Copperoaks Driive, which is available for sale or lease. In this case the consumer was savvy to how these scams work and, after finding the bogus ad on Craigslist, did a Googe for the address and found our names. She contacted us and we let her know that the house is available for $1700 a month, not $800. We contacted Craigslist and they flagged the ad for removal; we then asked Tiffany to send us info on the bogus ad. She also sent along the scammer’s emails to her, including this one. Interestingly, this is the name of the current renter’s wife. In the past, the scammers have asked that money for first/last month and security deposit be wired directly to them. We have left the spelling untouched.

From: Alicia Perdue <aliciaperdue@yahoo.com>
Date: February 23, 2012 11:16:23 AM CST
To: Tiffany <email removed to protect consumer>
Subject: Re: $800 / 3br – 1963ft² – 19532 Copperoaks Drive (Tyler TX )

How are you? Thanks for the interest in my House, my house is still available for rent and is located at 19532 Copperoaks Drive, Tyler TX 75703 quite and safe I only need someone that can take good care of the house at my absence because right now am not around i just secured a contract in Birmingham of which i will not be back until after 2years. And am here with the house keys and document, i tried to look for management before i left but couldn’t get any in time. But the one i got we got a deal, but later my husband advised against that. I reasoned with him and accepted him advised. So I contacted the agent back and let her understand that i am no longer interested in handling the property to her anymore. So later we decided to  have the house rent out, we would have give the agent this job also but the truth of the matter is that the agent would want to handle it professionally and the occupant may not be able to reason along with her later. If you notice, you will discovered that the price we are offering is far below standard price, this is enough for you to know that we are not after the rental fee but the absolute care for the property. So If you know that you have a good reference and a good credential you can email me back to secure and occupy my house at my absent.

NB: You can go check the neighborhood and get back to me for further discussion, any sign post will be removed once i get any responsible tenant so you ignore the sign post cause i have stop dealing and contacting the Realtor for too much fees i pay trying to ripe me off. It is available for a long term lease as we will be here for 2years and also intend buying a new home on getting back to the states. Pets acceptable(security deposit required) which is $400. References a must. The rent fee is $800 per month, get back to me as soon as possible because i need a tenant urgently and i can also forward  the application form to you, if you are interested.

General house description:
Affordable Country Place Cottage. Beautifully landscaped hilltop views appeal to those who are tired of tiny city lots. Estate-sized homes surround this cottage on 2.2 acre corner lot. Open living room with fireplace and vaulted ceilings will be enjoyed this fall & winter as the seasons change.
Best Regard

In a subsequent email, the scammer wrote this, “You are free to drive by to take a look of the house and peak [sic] from the window to view the inside and i can send you pictures of the inside then get back to me if that is what you are looking for.”

Inviting anyone to trespass here in Texas is dangerous. Knowing this tenant, that could be a recipe for getting someone shot.

Just another day in the interesting world of real estate!

Five Questions to Ask Your Mortgage Professional

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By Tara-Nicholle Nelson | Broker in San Francisco, CA

Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house!
Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional:
1. Are you a bank, a broker, or both?  Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise.
Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan – low down payment and moderate qualification guidelines – without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely.
Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages – Plans A, B, C and D, if you will – which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out.

2. Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative).
The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible.
3. How long will it take to close my loan? How much time will I need for loan and appraisal contingencies?  The time frames for closing your mortgage – which often drive the time frames for closing your home purchase – often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage.
When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process.
4. Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval.
5. How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset – and largest financial obligation.
Reprinted from Trulia