Does anyone have any experience with this program? I don't like the idea of giving up control over the negotiations but if they do a good job, it might work. And it looks like we could get some volume.

RaytheRealtor

RAY,

My experience has been that things get much worse when you give up control of the process. If the 3648 Program you're speaking about is the one associated with the Mortgage Debt Relief Act--then I think it's a stop gap to the inevitable.

RAY,

I did more research on this and it turns out it is a bit of a marketing trick. Program 3648 is not affiliated with the gov't or any other gov't sponsored entity. It is a private firm using the Mortgage Debt Forgiveness Act (HR 3648) as a marketing tool to get clients.

From what I read, they will give you information or have your clients talk to someone they "certified" in order to give the homeowner a run down as to their options. The work done by the "certified" agents is VOLUNTARY and the premise is to help the homeowner and in turn get their business in the future.

To me, the gov't has the same kind of program with the Help for Homeowners venture they have with participating lenders. The best bet is to get educated on all the option available and give your clients the information they need as they need it without losing control.

The angle for the company marketing this is to get the agent into as many doors as possible. Once they're in there will be a certain amount of short sales listings going to that agent. That company will in turn process the paperwork and charge their fee on the HUD like other processing companies.

It's a nice parlor trick they have there. Bottom line, is that you're giving up control...that's never good. There are other certifications out there that will teach you to get the business and profit from your own work. You know that I'm partial to the CDPE.

I checked this out as well...Sidney is correct. This is actually a company called BGS3 (I think...I can't remember if that is exactly right) and they are a LEAD company.

They do CERTIFY their Realtors, but the education is very SIMPLE...they don't TEACH like the CDPE.

I recommend the CDPE because I took the class myself and I KNOW the majority of the curriculum is valid.

Sidney...BY THE WAY...I also researched the 5 year - 1 year inactive statute in FLORIDA regarding the deficiency advice you're giving clients.

I found out one of two things...either I misunderstood you or you may be explaining this issue incorrectly. No worries, it was probably me...however, the FL statute of "case inactivity" IS NOT a good way for your clients to attempt in getting lenders deficiency rights removed.

The statute is VERY broad and any good attorney will be able to get the deficiency rights back if they see you in the docket (and they are notified as well) asking the judge to remove these rights because of the one year inactivity. Its kind of the "let a sleeping dog lay" theory because here's the meat of what the statute gives us:

The statute is a 5 year time limit the lender has in order to FILE for a judgment against your client. If they don't file within 5 years...you're free from the judgment and WILL receive a 1099 on the remainder of the forgiven debt..GOOD NEWS! However, the statute has a 1 year inactivity rule that allows one to enter a motion to the judge asking for dismissal on the INACTIVITY grounds. So...if you've read the statute or talked to a CDPE or inexperienced attorney IT SOUNDS LIKE A WINNER!

BUT...there are 2 major problems:

1. Unfortunately, experienced attorneys on the lenders side can reactivate the deficiency and then you've awaken a "sleeping dog"...so that's no good.

2. The judge can also deny your motion for dismissal on the grounds that YOU OWE THE MONEY. So, it depends on the judge, first...then, even if you make it by HIM or HER you STILL must HOPE you haven't awaken a "sleeping dog."

So, after researching your GREAT IDEA (not taking away from your other great work because I've taken some of your posts to Attorney Shapiro and he's appreciated your fresh ideas & knowledge just as much as I have) we've decided (in the state of FL) that "awakening this sleeping dog" will NOT be a good move for any of our sellers/clients/borrowers facing possible deficiency judgments.

Attorney Shapiro feels this way because if I were to awaken the "sleeping dog" by recommending that my clients file this motion, as a Realtor, I would be very much liable unless the client suggested & demanded this course of action. If the lender and their attorneys reactivated the judgment it would almost guarantee that they're coming at my client...thusly, a judgment can ;last for up to 10 years AND be renewed for years after as long as the lender really wanted to keep it going according to FL law.

So...it really comes down to if your client is COLLECTIBLE in our view.

Are your sellers really insolvent?

If not, they are allowed (its a free country) to protect their assets, but without a strong Attorney-Realtor relationship I wouldn't take these types of clients or their listings.

Great work, Sidney...you always encourage great conversations at my firm.

Brandon A. Sciuto, PA

The feeling from our side it this. If the Lender has not filed after a year then the chances they will goes down, unless there is a change in the status of the debt holder.

In theory you may be correct, but in practice it has not really played out this way. Lender seem to be hesitant to pursue "reactivation" as it is another cost for them and often they are not prepared to pursue by not having boots on the ground.

I've gone to court to argue for extension on the Bank Sale date and we have gotten up to 6 months (usually you get 30 days if homeowner doesn't show and 90 days if they just show up) because the lawyers are not really prepared. They have too many other file going.

If someone is in a situation in which they will consider a Bankruptcy to remove any of the debt once pursued then it is worth a try to go through this route in the hopes it will eliminate the uncertainty for the next 4 years. They can still go through with their plans of Bankruptcy, but sooner and in turn an earlier recovery. Lenders will have a better chance to collect in several years then they do now because of the debt holders economic condition today. After a Bankruptcy their condition should be better and that process can raise a flag at the lender because they don't have to worry about that process negating their claim.

Another point that may make it worthwhile is that we don't know how the economy will be in 5 years. Many people might have recovered and so may have the Lenders and they would reallocate resources to see how viable it would be to then pursue the Judgment. In that timeframe there may be many, many people that have recovered enough to merit the pursuit of the Judgment.

It may be better for some to deal with this issue now and more forward.

I don't advocate anyone to do this, but it is important they know it's available. Again, I'm not a lawyer and I bow to Mr. Sharipo's opinion, but looking outside the box...it might be a Godsend for many.

You know what the biggest reason might turn out to be on this. It seems Lenders are starting to "sell" these debts to the more aggressive debt Collection Co.'s Trying to get rid of the debt before it hit their books would be sufficient for me to risk waiting a sleeping giant. I can deal with them rather than the very aggressive and predatory Collection Co.'s