Short Sale Fraud – Freddie Mac Drops A Huge Bomb On Real Estate Investors

Short Sale Flip Fraud – The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The latest opinion released from Freddie Mac on short sales presents legal and practical issues for short sale investors.

The organization posted a new educational article on April 16, 2010 titled “Emerging Fraud Trends: Short Payoff Fraud.” Essentially, the article stated that a short payoff or a short sale can be considered fraudulent if the lender agrees to a short sale that already has a third-party buyer in place that is paying a higher amount than the agreed-upon loan payoff amount. This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario involved a facilitator, whose description matched that of a real estate short sale investor, who negotiated a deal with a lender to short sale a home worth $80,000 with a debt of $100,000 for $70,000. In the scenario, the facilitator fails to notify the bank he has a higher offer, 95,000, on the house. When the transactions close – in this case on the same day – and the facilitator pockets the difference, according to Freddie Mac he has just committed fraud because he withheld information about a higher offer and causes Freddie Mac to take a “larger than necessary” loss on the sale.

The writer encourages everyone involved in short payoffs to look out for short payoff flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.

Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. This may not yet be a law, but the signs are not good when Freddie Mac has posted such a direct attack on short sale investors.

I have researched the Numis Network thoroughly, and have put this article together as my official “Numis Network Review,” to give you a clear picture of what the Numis Network exactly is, and share some of the secrets they don’t mention to you on their site.

The Numis Network was founded on the idea of joining the mass amounts of people who collect coins in America, with the leveraging power of multi-level marketing. For the first time ever, it allows ordinary people like us to earn a residual income from people whose passion it is to collect coins.

I do have a passion for collectible coins, as well as for multi-level marketing, so I was interested with the Numis Network MLM idea as soon as I first heard about it. So I decided to do some extensive research on what they’re offering exactly, and if they really knew what they were doing.

For example, in the video interviews they have on their site they state that building your network is simple and easy. They mentioned that all you have to do is to send people to the replicated site they provide you, then have them click the “join now” link, and that is all there is to it.

Experience has shown, however, that you can’t build a successful network marketing business, along with thousands of recruits and consumers, simply by directing them all to your replicated site.  

The main reason is that there are already so many other people in that company who use that same replicated site. So unless you have some way of differentiating yourself from everyone else in the company (like your own personal site), you’re most likely not going to appear as anyone special, and there won’t be any good reason for anyone to join your organization.

The Unique Numis Network Compensation Plan

The Numis Network has a very lucrative compensation plan called a binary system, with two legs on each side and unlimited levels deep. You earn commissions made on sales from your site, residual commissions from people who get in the auto-shipment program, and commissions from people who order more coins.

But one thing about the Numis Network compensation plan that I find to be quite unique, is that they pay $50 for each person underneath you who decides to join their “training program.” I personally have never heard of any company that charges extra fee for their training program. Most companies offer it for free, so it might possibly be good training just because they’re charging a fee for it.

But then again, it is the company we’re talking about, and I think that just like most companies, they would only want to focus on training people on how to market the company’s service, rahter than teaching people how to market themselves (which is essential to become successful in MLM).

The Numis Network Scam

In case you didn’t know, our economy is in quite a downturn. US currency is no longer accepted in many countries all over the world. That’s because the US currency is literally nothing more than paper, not to mention that it is made out of debt. On the other hand, collectible coins and precious metals are rare and invaluable; therefore, they are accepted anywhere around the world, particularly during these times.

Wise investors understand that in the near future, money will no longer be of any value whatsoever. Thus, they are constantly looking for ways to invest in collectibles, like coins of precious metals, gems, rubies etc. Because of the rarity and value of coins, however, people are now having a difficult time finding places that carry them in gold. Even if they wanted to buy a million dollars worth of gold coins, they couldn’t do it.

Therefore, having said that, the fact that the Numis Network states that they have gold coins in stock, seems too good to be true. However, when I followed a Numis distributor’s link to the main site, I did find a link… to gold coins!

Also available are silver coins, world coins, rare and vintage coins, commemorative coins and several other varieties. Everything for both the collector and investor can be found here.

If they really do have gold coins in stock, and are in the business of distributing them, wouldn’t you assume they would display them in their coin selections as well? The fact that they don’t heightens the suspicion of Numis Network being a scam.

Conclusion

In my perspective, joining the Numis Network to have a temporary source of collectable coins, and an online store where other collectors can purchase from, and earn commissions from them is a fantastic idea.

However, Numis Network, like many MLM companies, may not be around for the long haul. The premise make a lot of sense, but only time will tell. That is why it is always important to build your value and promote yourself as a leader. You don’t want to be in a position where you have to start all over again with the next opportunity and nobody knows who you are.

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As far as multilevel marketing programs is concerned, one can commonly find “reviews” of a program that are actually recruitment pitches. A real review should always objective in its approach, analyzing both the good and bad aspects of a certain program. The best way I came up with to show you what should be searched for in Numis Network reviews is to do a review of my own.

Personally, I always use the three-point system when reviewing MLM opportunites. Other reviewes might not probably agree with my system; nevertheless, they should use some kind of system because it is a great way to maintain objectivity. If a system of analysis is absent in Numis Network reviews, then you should probably take them with a grain of salt.

The Numis Network product is collectible coins. Currently they have one model of collectible coin, but they intend to expand to more models in the future. I have not heard of any other MLM businesses that deal in collectible coins and being unique is always an advantage in the MLM industry.

However they are entering into the collectible market which is notoriously shaky during economic down turns. Quality Numis Network reviews should inform you on both aspects of the product.

As for the company and its founders well I am sure you will hear all about them in most Numis Network reviews. Although the company is fairly new, it has a well-known numismatist among its founders, so they have an expert on coins to help them in this enterprise.

The other founders are veterans at MLM, including two men behind IDSTC, a company that specialized in developing web-based tools to aid MLM distributors to both grow and manage their businesses.

When it comes to marketing materials, I’m confident that the back office suite offered by Numis Network will land on the top shelf. It is guaranteed, with IDSTC guys like Ian and Chris making up two of its four founders.

Thr best Numis Network reviews not only look at the MLM opportunity but also remind you what is needed to succeed in the MLM industry. At the end of the day, success with Numis or any other MLM program depends on the distributor’s know-how on marketing. One can succeed with any MLM program if he/she fully understands the principles of successful marketing.

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Have you ever purchased something, brought it home, and then found that there is one thing problematic about it? It could just be a bit too big or a bit too small, it may not match in the place set for it, or it could clash with the other colors in the house, and so on. Those reasons are bit less complicated to deal with, but sometimes products get returned because they have a particular defect or worse, they don’t run.

One reliable way of making certain that you receive little customer complaints is by selling only top notch products. For instances, take certain time to read Acne No More product reviews before you recommend it to your clientèle. If, for example, you are advertising memberships to databases and clubs, make sure that these places present what they guarantee in ads. For example, give Chopper Tattoo a go to see before you even think to suggest it to your clients. You have to also do that when marketing a like customer service like a Premium membership at Flickr or at Tattoo Fever Ultimate Tattoo Design Guide.

So, how ought to one handle returns? Is your return procedure assigned? Do you be certain that your clients be acquainted with of this plan before they paid for an important thing. If you are an on-line store, did you ensure that your clients be on familiar terms with that they have the job to ensure that whatever they purchase ought to meet their requirements? If you said no to last few questions, then it’s time to do one thing.

If you do not be familiar with where to lead with the above, visit website pages for some ideas. You can even get in touch with legal aide if you desire to.  Just confirm that your return document and disclaimer is not only zealous enough to protect you, but it should also be fair to your clients. It is also exceptionally important that you make your suppliers are aware of of your return policies. This aids to make return transactions, if any ever happen, go much better. This is the reason it is crucial to have a terrific relationship with your supplier.

Talk it over with your suppliers at any occurrence theirs and your own policies are not match. Doing so helps to make certain your own interests and the welfare of your clientele.

Bulk REO Investing

Real estate investing and Bulk REO are tough businesses right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the tried and true strategy of long-term buy-and-hold investment houses:

* Virtual Real Estate Investing the term virtual real estate investing has multiple meanings, including the use of the internet to buy and sell property, and the purchase and development of internet websites as a means of generating revenue. With an objective analysis, one can see the conceptual similarity between physical real estate and internet properties including entire websites and even individual pages controlled on larger sites like Facebook, Squidoo and Google Knol. Increasingly, real estate investors are seeing the clear opportunity presented by developing web properties into revenue generating assets much like physical rental properties. This trend is on the rise and will continue for the foreseeable future.

* Bulk REO the prevalence of foreclosures in our economy has put mortgage lenders into a difficult position. With large pools of foreclosed properties on their books, it is no longer efficient for these lenders to sell their foreclosed properties one-by-one through real estate brokers. As such, mortgage lenders are increasingly opting to sell their foreclosures in packages to well-funded investors, at steeply discounted prices. Bulk REO investing is a rapidly emerging trend and will continue to be a significant tool for real estate acquisition and disposition until such time as the current foreclosure crisis abates and the foreclosure rate regresses to more normal historical levels.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in todays real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.