 Home | Profile | Archives | Blog Manager Recent PostsNew Jersey Truth In RentingMore on Mortgage Loan Modification and Mortgage Rescue Scams Bill Payer Program for Seniors - Burlington County Mortgage rates at 52-year low Mortgage Modifications, Fraud and Predators  RSS Blog FeedCategoriesBurlington CountyCamden County Cherry Hill Cinnaminson Delran Evesham/Marlton FHA Greeting - HouseJeanie Team Haddonfield Home Inspections Legislature - New Jersey Maple Shade Market Statistics Medford Moorestown Mortgage Information Mount Laurel New Construction Palmyra Philadelphia, Delaware Valley Real Estate and The Internet Reynard Run Riverton Schools Selling Your Home Taxes Delanco VA Loan Voorhees Home Buyers HUD Seniors Tenant Information Favorite LinksActive Listings from the MLSHouseJeanie Website HUD Sales HouseJeanie Team ArchivesApril 2009New Jersey Truth In RentingPosted at 7:51 PM, Apr. 23, 2009New Jersey Rent Deposit While working with a renter I came across a fact that Property Owners, Renters and REALTORS® should be aware of. My customer was interested in a particular property to rent. I called the listing agent for availability and showing instructions. During the conversation the listing Agent stated that the owner required 1-1/2 Month's Security, the First Month's Rent and the Last Month's Rent for a total of 3-1/2 Month's Rent. I challenged the Listing Agent on requesting the Last Month's Rent. The Listing Agent assured me that this was perfectly legal for the Agent had just completed another rental with an attorney as the property owner. Here is the law (In New Jersey) as stated in the New Jersey Department of Community Affairs book "Truth in Lending" regarding Security Deposits, page 9, second paragraph: "The security deposit cannot be more than one and one-half times one month's rent. It can be less. Any additional yearly security deposit increase may not exceed 10% of the current security deposit. A landlord may not charge a pet secuity deposit if it exceeds one and one-half times one month's rentwhen combined with the regular security deposit. In the case of Brownstone Arms v. Asher, the courts determained that advanced rents in excess of one and one-halftimes the monthly rental payment violates the secuity deposit law. Therfore, any prepaid funds held to secure future rents are considered to be part of the security deposit. This includes the last month's rent. It does not matter what the the prepaid funds are labeled. The landlord may only require one and one-half times the tenant's rent as security and the first month's rent at the inception of the lease....." Lessons learned: 1. When you are using an attorney in a Real Estate Transaction, make sure you obtain a full time Real Estate Attorney, not a "part-timer." 2. As a landlord, prospective tenant or REALTOR® obtain a copy of the NJ "Truth in Renting." NJ Department of Community Affairs The HouseJeanie Team.
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More on Mortgage Loan Modification and Mortgage Rescue ScamsPosted at 8:50 PM, Apr. 7, 2009Harris Real Estate University Published the following on their Blog:
Mortgage Loan Modification Scams: Typically what is happening is that troubled homeowners are paying $1000…$2000…$3000 UP FRONT and receiving no services. Whats worse, many of these LOAN MOD scammers are collecting the fees and never doing anything to try to help the homeowner. If you are doing loan mods the ethical and honest way you know that you NEVER charge upfront fees. If you are in one of the hand full of states that requires any sort of ‘license’ or ’state approved process’ you must comply.
Mortgage Rescue Scams. This type of thing has gone of for years. Here is the typical scenario: Homeowner is late 90 days+ on their mortgage. They have equity. A mortgage rescue scammer offers to ’save their mortgage. The scammer makes it so the homeowner signs the deed over. Next, the scammer has the seller pay THEM their mortgage payment. Additionally, the homeowner agrees to sign a lease on their former home (remember they signed over their deed). The homeowners is led to believe that the scammer will bring the mortgage current and then make the payments for the homeowners over an agreed period of time. Homeowner is told that they can ‘buy’ the house back from the scammer. What really happens is that the scammer never makes a payment. Keeps the lease payments…and then (when there is equity) throws the now renter out of the house. The house is sold and the scammer keeps the former owners equity. There are many forms of this scam but, thats the basic format.
A News paper report stated:
The U.S. Treasury has announced a new effort to crack down on criminals who prey on people seeking help with their mortgage problems.
On Monday, Treasury Secretary Timothy Geithner reported that government agencies had recently identified dozens of suspicious companies that were running suspicious ads about mortgage foreclosure rescue services.
According to Geithner, the Treasury’s Financial Crimes Enforcement Network has already produced a number of recent leads that are helping law enforcement agencies stop foreclosure scams or further investigate suspicious companies.
Geithner also noted that the Obama administration’s Making Home Affordable program is an important part of its economic stimulus effort, which makes foreclosure fraud an even higher law enforcement priority.
“American homeowners desperately need the relief this program offers, but the very last thing they need is to be taken advantage of as they try to hold on to their homes,” said Geithner.
A report by ABC News said that the FBI is currently investigating about 2,100 mortgage fraud cases, a 400-percent increase from 2004.
The scams typically target homeowners with damaged credit scores who are willing to pay upfront fees to people who claim they can resolve their mortgage problems. Unfortunately, many of these people end up with worse consumer credit in the long run.
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