He is the self-proclaimed condo king of New England, a man so cheeky that after five years in prison for bank fraud he’d moor his 94-foot yacht off the federal courthouse in Boston just to goad prosecutors.
She is the former fitness instructor and ventriloquist who law enforcement says rebuilt a real estate empire in Florida while her boyfriend pulled the strings from his jail cell.
Boca Raton residents Bill Lilly and Valerie Kaan are a model of the American rebound. A 2005 Boston Globe story during the couple’s high-rolling days — before the recession would again test their muster — says they were making the most of their second chance in life with matching Rolls Royces and a waterfront mansion.
But maybe the third time is the charm.
Jun 17, 2013 “Share your voice on Yahoo! websites.”
Problems associated with foreclosures and short sales continue to mount as new ones continue to pop up.
The latest example: A glitch in the credit reporting system (Metro2) that can keep those who exit their homes through a short sale from qualifying to purchase a new home for much longer than they anticipated could suppress the real estate market.
The problem lies with the software program used by the credit reporting system. We have heard from clients, and have independently confirmed through research, that the system does not have a separate code that recognizes the difference between a short sale and a foreclosure in the real estate market. The coding system is used by the three major credit-reporting organizations TransUnion, Experian and Equifax.
To understand why this is a problem, it’s important to understand the differences between a short sale and a foreclosure.
In a short sale, the bank must approve the sale of a house to a new buyer at a price that is acceptable to it, the buyer and the seller. Any unpaid loan balance that isn’t covered by the proceeds from the sale can either be partially or fully forgiven. The bank plays an active role throughout the process and can negotiate with the new buyer for a higher price and higher repayment of principal from the original borrower. Banks have begun approving short sales more than in the past because they are cheaper and are less of a problem than foreclosures.
Governor Rick Scott signed a bill that aims to move foreclosures through the court system more quickly, but some homeowner advocates worry that it will erode their rights.
House Bill 87 requires banks to file cases with a clear chain of ownership of the mortgage note and how the delinquency occurred. If the case has the correct documentation, the lender can seek a “show cause” order as to why it shouldn’t be awarded a judgment and take the house. The homeowner would have to quickly raise a valid defense.
The foreclosure fast bill prevents homeowners who wrongly lost homes to foreclosure from getting them back. Instead, they would be awarded monetary compensation.
Weston foreclosure defense attorney Roy Oppenheim said the bill gives title insurance underwriters a get out of jail free card because they are no longer liable for the improper sale of bank-owned homes.
“The original homeowner who was foreclosed upon, and may have been illegally foreclosed upon, ultimately is the big loser,” Oppenheim said. “While they can sue the bank for an illegal foreclosure, if they can find a foreclosure defense ttorney willing to handle such a case, they will never be able to get their home back.”
In addition, lenders would have only one year to seek a deficiency judgment against a borrower to nail them for the judgment amount in excess of the value of their home.