Real Estate and Technology news for agents,brokers

BrokerIPTV  : We are talking today with Jon Goodman, the real-estate attorney with Frascona, Joiner, Goodman and Greenstein, . John thanks for being with us, I appreciate that. Foreclosure, its in the news in lot, media makes it out to be a crisis, whats your take on it?

 
Jon Goodman: I think crisis might be a little bit of an over statement, but its definitely a big problem for the economy.

 
BrokerIPTV  : There are new laws coming into effect January 1^st in Colorado. Changing the foreclosure laws, can you first give us for everyone who is watching what the law is currently?

 
Jon Goodman: Yeah, the way the law is currently. Once a foreclosure gets filed a foreclosure sale is setup about 60 days later. Before the foreclosure sales the borrower has a certain opportunity pull the iron out of the fire and opportunity to save their house from foreclosure that opportunity we call the opportunity to cure, that is thats the opportunity to bring the loan occurred. If the borrower isnt able to pull the iron out of the fire the property goes to foreclosure sale. It get sold at a public auction in the highest bidder. After the foreclosure sale the property is considered non agricultural property. so, if its garden verity single family home at condo or a town home, then the owner has whats called the 75 day owners redemption period. And in the redemption period there are essentially buying the property back from the highest bidder at the foreclosure sale. If that period passes and the owner has not redeemed, that what we call the second opportunity to pull the iron out of the fire. If the owner hasnt redeemed then they loose their house to foreclosure.

 
BrokerIPTV  : Ok, now whats the new law that goes into effect January, what changes from that scenario?

 
Jon Goodman: There is lots of settle changes that arent all that relevant to lay people. Whats relevant to a home owner who is contemplating, going through the foreclosure process is the law takes the time there otherwise, they voted to the post sale redemption period and moves that time pre-sale. So, instead of having a 60 day period to bring the loan current, instead of having a 60 day time period to accrue. The borrower has essentially a four month period to bring a loan current, but no redemption rights. Once the property goes to foreclosure sale the game is over for the owner.

 
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BrokerIPTV  : Personal view, do you like that change?

 
Jon Goodman: On balance, yes.

 
BrokerIPTV  : You do?

Jon Goodman: Yes, I do.

 
BrokerIPTV  : Why?

 
Jon Goodman: I like it because the game playing with foreclosure investing got a little bit out of hand and I think this will tamp down on this and this will reward straight forward foreclosure investors who will go to the sales they will bid. We might actually see some competitive bidding it foreclosure sales bidding up the price of the property to be a fair market value only time will help.

 
BrokerIPTV  : Final question. What do you see as far as investor demand in interest?

 
Jon Goodman: There is tremendous foreclosure demand and interest thats for two reasons. One is there is tremendous amount of foreclosures out there and investors are intrigue by that, but then there is also a lot of interest, there is also lot of demand because the investor community knows that the law they are changing and they want to learn how they can take advantage of the rule under the new system.

 
BrokerIPTV  : John, great talking with you, thanks for being with us.

 
Jon Goodman: Thank you Dan.

 
BrokerIPTV  : I appreciate it.